Options trading: How to protect investors and take care of market liquidity? Deepak Shenoy answers

economictimes.indiatimes.com:

Deepak Shenoy, Founder of Capital Mind, says that in the case of options trading, we need to increase regulatory oversight, create a mechanism so that the systemic risk is addressed, and allow for such highly leveraged traders to either bring in more capital to the table either by a margin increase or by an increase in lot size.
The Indian options market is currently clocking volumes that on days are higher than India's GDP. The option market has seen activity like never before and we have seen historically when the options market is dominated by a lot of retail activity, it ends up very badly. What is the best way to protect the investor and also ensure that the market liquidity is not compromised?
Deepak Shenoy: I would question the second part whether options market retail participation being very high has harmed the market because we have always had a retail run market for the longest time, both in cash and we know the biggest traders in the market on an intraday basis are retail traders, not institutions. And even in options, that has been the case. There is a large amount of them. So, I do not think there is necessarily a need to say that there are too many of them playing this market and therefore we should stop it.

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The bigger problem is that a lot of them lose money and