look news india
Ahmedabad: After the Sebi committee recommended increasing the lot size from Rs 5 lakh to Rs 20-30 lakh to curb the growing retail participation in the futures market, now Sebi may take strict action to curb the inflow of retail investors in the SME segment. Well. Sebi may now increase the lot size for SME IPOs to Rs. 5 lakh.
Last week, amid the frenzy over SME IPOs, the National Stock Exchange took drastic measures to limit pricing in SME IPOs. The NSE imposed a ruling that the share price on the day of listing cannot exceed 90% of the issue price, leading to a lot of confusion among investors and analysts on how NSE can fix the price, as this rule of the exchange can affect the free market of company market value valuation discovery.
However, now there is news that market regulator SEBI may take strict measures to keep retail investors away from the SME IPO market. By increasing the lot size i.e. the number of shares offered for SME IPO, the minimum investment can be fixed at Rs. 5 lakh.
There has been unprecedented speculative activity in SME IPO offers recently. The NSE Emerge platform for SME shares saw a collection of Rs. 4622 crore.
This figure is 87 points higher than the previous record of 2017-18. 1442 crores which is much higher than the previous record. The figures of the benefits of the bumper listing of the IPO have attracted retail investors and due to this the subscription has increased more than before.