(MENAFN– KNN India)
New Delhi, Oct 22 (KNN) India’s market regulator is set to release a paper discussing concerns about Small and Medium Enterprises (SME) Initial Public Offerings (IPOs) due to unusual subscription rates and listing gains.
The Securities and Exchange Board of India (SEBI) has raised issues about the current practices and disclosures in the SME sector.
SEBI member Ashwani Bhatia described recent trends in SME IPOs as ‘disturbing’ during the Morningstar investment Conference.
They are particularly worried about how investors participate, market-making, and underwriting practices.
There has been a surge in SME IPO activity this year, with some offerings seeing subscriptions over 1,000 times greater than expected, attracting many retail investors despite a minimum investment size of Rs 1 lakh.
In 2024, the SME IPO market raised a record Rs 7,016 crore from about 205 IPOs, greatly exceeding last year’s total of Rs 4,687 crore.
Bhatia acknowledged the importance of SMEs for the economy but warned investors to be very cautious.
The new regulations aim to improve transparency and standardize disclosures in the sector.
SEBI and stock exchanges are closely monitoring the market to prevent manipulation and fraudulent activities in SME listings.
(KNN Bureau)
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