SEBI to Tighten Norms for SME IPOs, Says Ashwani Bhatia

SEBI's whole-time member, Ashwani Bhatia, announced plans to tighten regulations for SME IPOs, following concerns over unrealistic business projections. A discussion paper will be released by year-end, with proposals including enhanced monitoring and scrutiny of auditors. Primary issuances have hit Rs 2 lakh crore in the first five months of the fiscal year.

SEBI's whole-time member, Ashwani Bhatia, announced on Friday that the capital markets regulator will implement stricter norms for SME IPOs.

This announcement comes after SEBI warned investors about unrealistic business projections by several small and medium enterprises (SME).

Bhatia disclosed that SEBI aims to release a discussion paper on the issue before the year ends, during the Global Fintech Fest.

Proposed changes could involve enhanced monitoring and tighter scrutiny of auditors. Bhatia emphasized that diligent work by chartered accountants could prevent potential problems.

Additionally, primary issuances have already reached Rs 2 lakh crore in the first five months of the fiscal year, as compared to Rs 1.97 lakh crore for the whole of FY24.

(With inputs from agencies.)