look news india
Mumbai: Capital markets regulator Securities and Exchange Board of India (Sebi) is investigating the activities of three to four initial public offering (IPO) advisory entities in the small and medium enterprise (SME) IPO segment.
The probe has been initiated by the regulator after receiving complaints against unregistered entities linked to getting a massive response to IPOs and guaranteeing a huge surge in listings. People familiar with the matter say Sebi is investigating the role of three to four advisory entities that are highly active in the SME IPO segment based in Mumbai or Ahmedabad.
The SME IPO segment has been in the news with public issues receiving exceptionally high subscriptions and many of these issues breaching more than a hundred times the subscription, followed by an unprecedented surge in listings. After a delay of 200 days, the company informed the exchanges about the resignation of independent director MC Oud Lot. SEBI wants advisory body ISF to develop sector-specific, standard KPIs for IPO prospectuses. SEBI proposes extension of Sustainable Finance Framework. SEBI proposes extension of Sustainable Finance Framework to securitised instruments.
The SME IPO segment has seen the entry of several IPO advisory firms that operate outside the purview of Sebi, as these entities are not registered with the regulator. As a result, these companies are not bound by any rules or regulations, said a person familiar with the investigation. These three to four entities are based in Mumbai or Ahmedabad.
Those who hold a large market share in the SME IPO segment and leverage their vast network of brokers and high net worth investors. Those who are generally engaged in merchant banking but are doing so without obtaining a merchant banking license from SEBI.