Yes, we can remove volatility from the market provided Indian markets become mature and becomes less dependent on FII money. One can always have more mechanisms in place for physical settlement.
Last but not least is that Finance Ministry should remove Security and Transaction Tax (STT), which will bring back the jobbers into the market and create more liquidity, making the markets less volatile.
Thus these are a few methods which needs to be undertaken to bring more stability and the depth in the market and do remember to keep visiting the site for free stock tips and make money making a daily habit.