BS EDIT: SME IPO: Sebi's proposed reforms aim to protect investors

By Business StandardPublished On Nov 21, 2024

SME IPO Reforms

Sebi has released a consultation paper to review IPO and post-listing SMEs. The focus is on enhancing investor protection and ensuring transparency

Why Review is Needed

Sebi's SME IPO reforms aim to address conduct concerns, protect retail investors, and enhance transparency amid growing market interest

Proposed Changes in Rules

Sebi proposes raising SME IPO application size, allottees, and issue size to attract informed investors, enhance liquidity, and distribute risks

Addressing Related-Party Transactions

Sebi proposes stricter disclosure norms, enhanced scrutiny for transactions over Rs 10 crore, and monitoring proceeds for fresh issues above Rs 20 crore

Protecting Investor Interests

Sebi's reforms aim to protect retail investors, boost market liquidity, ensure fair practices, and curb platform misuse by unscrupulous entities

A Transparent SME Market

Sebi's SME reforms enhance access to risk capital, foster a vibrant financial market, and channel savings into productive investments for growth