Indian small-cap and mid-cap stocks experienced a significant decline, with the S&P BSE SmallCap Index rising over 56% and the BSE MidCap Index surging over 62% in the past year. Concerns over market volatility and competition from cryptocurrencies have impacted the market, leading to a substantial fall in small-cap stocks. SEBI has advised caution amidst the market selloff, with experts analyzing the situation and offering insights on potential opportunities in the market.