Timeline of its decline from the beginning of the boom from February to March

Mumbai: (1) In February, market experts had expressed concern over overvaluation of small and midcap stocks.

(2) Triggered by the Reserve Bank of India imposing restrictions on IIFL Finance Limited from sanctioning or disbursing new gold loans for non-compliance with KYC norms.

(3) SEBI barred JM Financial from issuing loans against stocks and debentures for mishandling the IPO financing and subsequently acting as the lead manager of the debt IPO.

(4) New revelations expressing concern over frenzy of over-subscription and post-listing manipulation in SME IPOs, SEBI chairperson's statement on introduction of norms spooked stocks.

(5) Hari Shankar Tibrewal and his associates raided by the Enforcement Directorate (ED) and arrested for allegedly transferring money to the stock markets, along with freezing the accounts of 13 entities linked to them, leading to small cap Large differences arose in the shares.

(6) SEBI urged mutual funds to impose controls to limit fund flows into small- and mid-cap schemes and warned investors about the risks and stress-tested liquidity in the event of a crisis—a major crash. How will it be managed, causing panic selling in shares.

(7) A crisis of confidence started emerging as banking stocks lagged behind the Supreme Court's demand for State Bank of India to provide immediate details in the Electrol Bond case.

(8) Finally today, SEBI announced new measures to place 300 mid and small cap stocks under additional surveillance mechanism (ASM), leading to panic selling in the market.

(9) The possibility of the Federal Reserve delaying interest rate cuts amid rising inflation in the US has shaken investor confidence.