Sebi Tightens Grip on SME Exchanges: Ensuring Fair Play for Investors

Sebi aims to curb exuberance, price manipulation, and fraudulent trading on SME exchanges. Whole Time Member Ashwani Bhatia highlighted these concerns at the India SME Banking Summit. Sebi's board plans to address these issues in its upcoming meeting. Recent revelations necessitate stricter oversight and improved governance in SME listings.

Sebi, the capital markets regulator, is focusing on preventing exuberance, price manipulations, and fraudulent trading practices on the Small and Medium Enterprises (SME) exchange, informed a senior official on Tuesday.

During the India SME Banking Summit, Whole Time Member Ashwani Bhatia announced that these issues will be deliberated upon at Sebi's upcoming board meeting. Recent media reports indicate that the meeting scheduled for Wednesday will specifically tackle SME board-related concerns.

Bhatia addressed the need to prevent unhealthy market practices, emphasizing the importance of governance for SMEs. Despite challenges, SMEs have raised significant capital in 2024, with Rs 6,447 crore from 171 listings, highlighting the necessity for transparency and compliance for sustainable growth.

(With inputs from agencies.)