A SEBI study indicates retail investors incurred significant losses in the futures and options (F&O) segment. The article explores whether preventing direct retail exposure to risky instruments is the optimal solution, referencing the risk homeostasis theory where individuals may compensate for reduced risk by taking on more elsewhere. It questions if new norms, like higher contract values and margin requirements, effectively moderate retail investor behavior in F&O. The piece suggests offering retail investors exposure through mutual funds and ETFs as a potential solution.