Yes volatility will increase. It was just late night printing mistake on that post.
I said several times on other posts, volatility will ultimately only increase as the bad effect and SEBI will fail miserably (see the above last post).
Ultimately people will shift to handful of stocks in nifty and bank nifty...volume will dry up in other contracts if they do it to all stocks in F&O especially during big corrections in market..
Unfortunately, SEBI clearly mentioned they want to implement physical settlement to ALL STOCKS, in a phased manner.
Actually, they are not sure about the ill effect selected 46 illiquid stock first as punishment.
Here is the link:- Phased physical settlement of stock derivatives mandatory, says Sebi