INSUBCONTINENT EXCLUSIVE:
In July, the NSE set a 90 per cent cap on listing gains, while the regulator itself has consistently urged investors to be cautious when
securities regulator is considering tighter oversight on micro-cap firms going public, including monitoring the use of their funds and
track record of profitability and greater scrutiny of financial statements are the other potential steps under review, the person said,
asking not be identified as the details are private
This follows incidents of fraud in this segment of the market, they added.
Even so, the Securities and Exchange Board of India is not
inclined to take over the listing approval process for small and medium enterprises from the National Stock Exchange of India Ltd
and BSE Ltd., the person said
that are seen as having the potential to expand amid accelerating economic growth
Just two weeks ago, a $1.4 million initial public offering by a motorcycle dealership with only two outlets and eight employees was
oversubscribed more than 400 times, raising concerns about the quality of the offerings in this niche market.
The surge in investor
appetite for shares of firms with an unproven track record as well as some instances of stock-price manipulation have sprung Indian
In August, SEBI asked the BSE to halt the IPO of plywood maker Archit Nuwood Industries Ltd
itself has consistently urged investors to be cautious when investing in SME firms
A discussion paper outlining stricter listing rules for this segment will be released by year-end, Ashwani Bhatia, a SEBI whole-time member,
