The Securities and Exchange Board of India (SEBI) has introduced new measures to regulate the futures and options (F&O) market. The six-step framework aims to protect small investors and curb excessive speculation. Key changes include larger contract sizes and the elimination of daily expiries. These measures are expected to reduce trading volumes by 30-40%, impacting liquidity in the derivatives market. Notably, Zerodha's Nithin Kamath predicts a 60% drop in total F&O trades and a 30% decline on Zerodha's platform. The new rules have already affected brokerage firms, with shares of IIFL Securities, 5Paisa, and Geojit Financial Services dropping up to 8%. SEBI's actions come after retail investors lost Rs 1.8 trillion in the F&O market over the past three years. Ashish Chauhan of NSE stated that SEBI's measures should have the desired effect of protecting small investors. The measures are set to take effect next month, with further evaluations planned after November 20.