SEBI May Come Up With Proposals On SME IPO Oversight This Month
SEBI is set to introduce new proposals for oversight in initial public offerings of small and medium enterprises, Whole Time Member Ashwani Bhatia has reiterated.
Bhatia, while speaking at the Morningstar Investors Conference, expressed concern over the increasing participation of retail investors in SME IPOs, highlighting the potential risks involved. The paper to deal with the issues may come out this month itself, he said.
"Many investors may not fully grasp the complexities and risks associated with these offerings," he said, while talking about enhancing investor education to mitigate uninformed investment decisions, as is possible in SME IPOs.
This is not the first time that the Securities and Exchange Board of India has mentioned its plans to bring more scrutiny into the SME IPOs. As reported earlier, SEBI had launched probe into more than 12 merchant banks over due diligence in SME IPO.
The regulator is vigilant in monitoring SME listings to prevent incidents of price manipulation and fraud, with plans to release a discussion paper on SME IPOs very soon. Bhatia urged retail investors to exercise caution when considering investments in this sector.
In addition to SME IPO oversight, SEBI is focused on improving financial literacy and investor protection across the country. The regulator has been conducting targeted education programs aimed at diverse demographics, including students, women, and rural populations. As of March 2024, SEBI boasts approximately 400 certified Securities Market Trainers and aims to increase this number significantly to meet the needs of the vast Indian population.
Bhatia also addressed the challenges within the derivatives market, noting that while India leads globally in Futures and Options trading volumes, 93% of retail investors suffer losses in this segment.
To protect retail savings, SEBI is discouraging the notion of F&O trading as a "national pastime". The regulator is implementing new rules, including stricter margin requirements, larger contract sizes, and enhanced upfront premium collection, along with clearer risk disclosures for retail investors.
On the bond market front, SEBI is actively working to expand participation and enhance transparency in bond issuances. Notably, retail participation in the bond market has surged, with Rs 8.6 lakh crore raised in the fiscal 2024.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
