Curbing Speculation vs. Market Participation: A Study of SEBI’s 2024 Derivatives Measures

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Notice

nThis is an unedited manuscript accepted for publication and provided as an Article in Press for early access at the author’s request. The article will undergo copyediting, typesetting, and galley proof review before final publication. Please be aware that errors may be identified during production that could affect the content. All legal disclaimers of the journal apply.n

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Year : 2025 [if 2224 equals=””]30/08/2025 at 9:47 AM[/if 2224] | [if 1553 equals=””] Volume : 14 [else] Volume : 14[/if 1553] | [if 424 equals=”Regular Issue”]Issue : [/if 424][if 424 equals=”Special Issue”]Special Issue[/if 424] [if 424 equals=”Conference”][/if 424] 02 | Page : 28 43

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    Sahil Salve, Sanjeev Rajepandhare,

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  1. Student, Student, Maharashtra National Law University, Mumbai, Maharashtra National Law University, Mumbai, Maharashtra, India

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Abstract

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nThe derivative market has become a cornerstone of India’s financial ecosystem, complementing the traditional stock market by enabling risk management, price discovery, and liquidity enhancement. However, with the rapid growth of this segment, concerns over speculative activities have prompted regulatory intervention. On October 1, 2024, the Securities and Exchange Board of India (SEBI) introduced significant reforms aimed at curbing speculation, protecting retail investors, and fostering market stability. While these changes are intended to address market imbalances, they have sparked debate over their potential to unintentionally restrict retail investor participation and impede market inclusivity. This paper critically evaluates SEBI’s regulatory reforms, analyzing their impact on market dynamics, retail investor engagement, and overall economic objectives. It draws comparisons with international regulatory frameworks, highlighting areas where the reforms succeed and where they may require recalibration. By exploring the balance between investor protection and market accessibility, this paper underscores the need for a more nuanced approach to derivative market regulation. It concludes with practical recommendations to create a framework that fosters sustainable growth, mitigates speculative risks, and ensures the long-term health of India’s financial markets.nn

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Keywords: Derivative Markets, SEBI Regulations, Retail Investor, Participation Speculation, Control Market Stability.

n[if 424 equals=”Regular Issue”][This article belongs to Research & Reviews : Journal of Statistics ]

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[/if 424][if 424 equals=”Special Issue”][This article belongs to Special Issue under section in Research & Reviews : Journal of Statistics (rrjost)][/if 424][if 424 equals=”Conference”]This article belongs to Conference [/if 424]

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How to cite this article:
nSahil Salve, Sanjeev Rajepandhare. [if 2584 equals=”][226 wpautop=0 striphtml=1][else]Curbing Speculation vs. Market Participation: A Study of SEBI’s 2024 Derivatives Measures[/if 2584]. Research & Reviews : Journal of Statistics. 30/08/2025; 14(02):28-43.

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nSahil Salve, Sanjeev Rajepandhare. [if 2584 equals=”][226 striphtml=1][else]Curbing Speculation vs. Market Participation: A Study of SEBI’s 2024 Derivatives Measures[/if 2584]. Research & Reviews : Journal of Statistics. 30/08/2025; 14(02):28-43. Available from: https://journals.stmjournals.com/rrjost/article=30/08/2025/view=0

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Volume 14
[if 424 equals=”Regular Issue”]Issue[/if 424][if 424 equals=”Special Issue”]Special Issue[/if 424] [if 424 equals=”Conference”][/if 424] 02
Received 12/06/2025
Accepted 25/05/2025
Published 30/08/2025
Retracted
Publication Time 79 Days

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