Sebi alerts the SME market to inflated values and dubious practises

The markets watchdog in India is concerned about dubious activities in the small- and medium-sized business (SME) sector.

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Promoters frequently take advantage of fictitiously high valuations to sell their assets at a premium, which disadvantages gullible investors

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Sebi's recommendation follows its chairperson Madhabi Puri Buch's March statement regarding several SMEs' cases of price manipulation during initial public offerings (IPOs) and trading

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The BSE SME IPO index increased by 214.08% so far this year and by 140.03% year over year, to 111,683.62 from 35,558.66 on August 28, 2023.

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Title 1

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When purchasing SME securities, investors are advised to proceed with caution by Sebi.

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