Putting some sting into the F&O tale

Sebi's proposals aim to reduce retail speculation in derivatives without affecting price discovery. Measures include tighter scrutiny of business models and preventing speculation from moving to other market segments like smallcaps or shadow trading platforms. The regulatory changes will require the trading ecosystem to adapt and recover from revenue setbacks. There is a focus on preventing speculative intent from resurfacing through effective policing and offering alternative higher-risk investment options for retail investors.