Options sellers not buyers will face the heat in that case. Isn't that the case?
I think SEBI has the much more detailed plan.
Do u read the above-posted link what happened in Korea in similar case? Just read. SEBI is just copying it.
They did something for option buyers also.
They increased the lot size for the Index option so much high, that most of the small retail trader does not able to trade it.
As a result, their derivative turnover dropped by 65% and the market lost momentum. Their market was DEAD for a period of 4-5 years after such restrictions. So, will be ours. Finally, they removed many of such restrictions in 2017 end then their market jumped up. Stupid fellow.
SEBI-NSE already did it intentionally to INDIA VIX so that no one can trade it. It is out of small retailers hand and smart money don't take the opposite side. So the contract is practically useless with no trading volume.