look news india
Mumbai: The major gap was triggered by a statement by capital markets regulator Sebi chairperson to take action including new strict rules for SME IPOs, segments, disclosures due to manipulation of share prices by companies after listing of shares of SME IPOs. Shares of SME companies declined for the third consecutive day today. BSE SME IPO index fell 2923.93 points or 5.53 per cent today. Thus, the BSE SME IPO index has declined by 13.50 percent in three days.
The SME IPO index has fallen 13.50 percent or 6792 points in three days. There was a difference in the share prices of many SME companies. Of the total 301 share-holding companies currently listed on the BSE SME platform, 186 shares were traded today. Out of which the share prices of 161 companies fell and closed negative. Whereas only 22 shares closed with gains. So far, a total of 484 companies have been listed on the BSE SME platform. Of which 183 shares have been transferred to the mainboard and trading in 30 shares has been suspended. Currently 259 shares are allowed to trade.
The point to be noted here is that panic selling has increased after SEBI's strictness on small cap funds and now the decision to disclose the disclosure framework for mutual funds for stress testing by March 15, while mutual funds- Asset management companies are not doing this. This stress test., but blames the current decline on extreme bullish excesses. Along with this, Kotak Mutual Fund Managing Director Nilesh Shah said that investors have been told that improvement is yet to come after extraordinary returns in 2023.
With this, he predicted major downside in microcap and SME stocks, but ruled out the possibility of a major correction in large-cap indices.
Along with this, he has made it clear that despite low liquidity and uncertain discipline-governance norms in SME stocks, Kotak Mutual Fund will never buy SME stocks.
