look news india
New Delhi, September 26 (HS). Bombay Stock Exchange has issued strict instructions regarding the listing of small and medium companies to be listed on the SME platform of the stock market. In the instructions, bankers have been asked to check the data given by the companies at every level, so that the companies cannot exaggerate the figures in their IPO draft. Companies have also instructed bankers to go to the company's location and check all the details to detect any kind of tampering done in the IPO draft.
Market regulator Securities and Exchange Board of India (SEBI) has already said that the rules for listing on the SME platform will be made more stringent. SEBI has instructed the exchanges as well as auditors to be cautious about SME listings. The market regulator has clarified that the listing of any company whose information in the IPO draft is doubtful should be postponed. SEBI has earlier issued a warning to investors to be cautious about investments made in companies listed on the SME platform.
It is alleged that many small and medium companies and their promoters misrepresent their business in the IPO draft, due to which retail investors have to face huge losses in the future. The IPO drafts of mainboard companies listed on both the National Stock Exchange and Bombay Stock Exchange are examined by SEBI itself, while the responsibility of examining the IPO drafts of companies in the SME segment lies with the same exchange on whose SME platform the shares of the company are listed.
It is believed that after the instructions given by the Bombay Stock Exchange to the bankers, some control can be put on the IPOs of small and medium companies. In recent times, the number of companies getting listed on the SME platform has increased significantly. The IPOs of these companies are also getting a strong response. The IPOs of some companies have been subscribed more than 500 times. In such a situation, market regulator SEBI suspects that retail investors, influenced by the boom in the market, can also get trapped in the clutches of wrong companies. This is the reason why SEBI is not only being strict on its part, it has also instructed the exchanges to be more vigilant, so that the interests of retail investors can be protected.