Sebi can bring the new listing rules for sme ipo says a report

SME IPO: Market regulator SEBI is keeping a close watch on the rapid growth of the SME IPO segment. IPOs of small companies have seen tremendous growth since last year. In just 5 months from the beginning of this year till now, more than 90 SME companies have launched IPOs. In the financial year 2024, this figure was 204 IPOs. Although this growth may indicate a positive market, SEBI fears that many companies have manipulated the IPO. In such a situation, SEBI is preparing to tighten the rules to protect the interests of investors.

SEBI Chairperson Madhabi Puri Buch has expressed concern

According to the information, SEBI has found many such cases where the IPO of the company has been oversubscribed many times despite its financial position not being that strong. This has benefited the promoters of the companies. Now SEBI may soon tighten the listing rules for better monitoring. SEBI Chairperson Madhabi Puri Buch recently said that some companies are manipulating prices. These are small companies. Their market cap is also low. They can easily manipulate prices at the IPO and trading level.

The rules for listing of SME IPO are easy

According to a Business Standard report, market experts say that SME IPOs are causing concern. Their listing rules are also easier than those of mainboard companies. This has created problems. The valuation of these companies is also surprising. The speed at which SME IPOs are coming is surprising. Such SME IPOs can create problems for investors. In the race to bring IPOs, many companies are also reducing valuations. This situation is neither good for the companies nor for the investors.

SME companies are very important for a healthy economy

However, experts say that the boom in the SME segment cannot be denied due to price manipulation by some companies. These companies are very important for the economy. They also generate a large number of jobs. By rapidly raising resources through IPOs, they will further strengthen the economy. SEBI should increase the lock-in period for these IPOs so that investors cannot sell their shares quickly. SEBI will have to make strict rules to protect the interests of retail investors. Experts hope that SEBI may soon make an announcement in this regard.

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