SME IPO | Seeing signs of price manipulation in SME segment, says Sebi chairperson Madhabi Puri

SME IPOs:  Sebi chairperson Madhabi Puri Buch said on Monday, March 11, that the capital markets regulator is seeing "signs" of price manipulation in the small and medium enterprises (SME) segment. The manipulation is both at the initial public offering (IPO) and trading, Buch said, advising caution to investors.

"We do see the signs of price manipulation; we have the technology to do it. We are able to see certain patterns. I'd say it is still on the kitchen table; it's not yet gone into the oven," Buch said, speaking to women journalists on the sidelines of a conference.

The capital markets regulator is still working with advisors to understand all the dimensions and analyse the data, she said, adding that if it finds any malpractices, the next step may be to issue a public consultation on them.

The chairperson said investors need to understand that the SME segment is different from the main board, and Sebi must underline the same in terms of the rules on disclosures that are made to investors. The regulations governing the SME segment, the disclosures, and therefore the nature of risk are all different, Buch added.