Adani-Hindenburg Row: SEBI Can Regulate F&O Exposure But Won't Restrict Access, Says JN Gupta

India has enough regulations in place to check significant disruptions in the market, JN Gupta, managing director of Stakeholder Empowerment Services, said while referring to SEBI's role in the Adani-Hindenburg case.

"When my company releases a report, I have to abide by the law, I am abiding by what SEBI says," Gupta told BQ Prime in an interview. "Unfortunately, in a situation like this when Hindenburg issues a report, none of the SEBI laws apply, so SEBI is unable to take any action against a person."

According to Gupta, the regulator would warn investors of the risks associated with the markets instead of actively shielding them or limiting access to the market.

"I don't think SEBI will ever say that my intention is to limit the losses for retail [investors] or anybody," he said. "SEBI will always say that this is the risk and you should be aware of the risk."

If the Securities and Exchange Board of India has permitted futures and options market, then they cannot shut the F&O market. They can only make rules of what should be the exposure limit, according to Gupta.

He highlighted that SEBI is already trying to educate investors about the F&O market. The segment has seen growing retail participation in recent times, with up to 90% participants losing money.