RETHINKING SME IPOs: SEBI STEPS IN TO ADDRESS MISUSE
Mint Mumbai|December 02, 2024
Sebi's effort to streamline SME IPOs is laudable but liquidity must also be a key focus area
Rasmeet Kohli & Pradiptarathi Panda
RETHINKING SME IPOs: SEBI STEPS IN TO ADDRESS MISUSE

(Sebi) has recently identified several concerns plaguing the SME space such as misuse of IPO proceeds, fund diversion, promoter exits and market misconduct. These issues pose threats to investor protection and market integrity. A Sebi analysis reveals that many SMEs have engaged in substantial related party transactions (RPTs) with nearly half of these companies undertaking such transactions exceeding ₹10 crore, and one in five surpassing ₹50 crore.

Sebi's well-thought-out light regulatory framework was introduced in 2012 to boost SME listings aimed at contributing to economic growth. The results were promising: as of October 2024, 745 companies are listed on SME exchanges with a market capitalization of ₹2 trillion. In 2023-24, 196 IPOs raised over ₹6,000 crore and by October 2024, ₹5,700 crore was raised through 159 SME IPOs. Investor participation, too, has grown in FY2022 to 46 times.

この記事は Mint Mumbai の December 02, 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Mint Mumbai の December 02, 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

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