SME IPO SEBI Chairperson Madhavi Puri says signs of price manipulation are visible in the SME segment

SME IPO: Sebi Chairperson Madhavi Puri Buch on Monday, March 11, said the capital markets regulator is observing “signs” of price manipulation in the small and medium enterprises (SME) segment. Buch advised investors to exercise caution, saying manipulation is rampant in both initial public offerings (IPOs) and trading.

“We see signs of price manipulation; we have the technology to do that. We’re able to see some patterns. I would say it’s still on the kitchen table; it hasn’t gone in the oven yet,” Butch. said, while talking to women journalists on the sidelines of a conference.

He said the capital markets regulator is still working with consultants to understand all the dimensions and analyze the data, adding that if it finds any malpractices, the next step could be to issue a public advisory on them.

The Chairperson said investors need to understand that the SME segment is separate from the main board, and SEBI should highlight this in terms of the disclosure rules it has to make to investors. The regulations governing the SME segment, the disclosures and therefore the nature of risk, are all different, Buch said.