ExeEdge Consultancy LLP’s Post

Few regulations in financial markets have the power to transform an entire ecosystem. SEBI came up with SME listing regulations in 2012. In the past 4 years, SME listings have gone through the roof. Rs. 15,103 Crore were raised trough SME IPOs in the past 3.5 years. 93% of the money raised was fresh issue and only 7% was offer for sale. 745 companies trade on the NSE and BSE SME platforms. 322 companies have already migrated from SME to main board platform. A success story worth taking a note and applauding. #SEBI #SME #IPO #regulations

Understanding SEBI’s Strategic Framework for SME IPO Market The SME IPO market has witnessed unprecedented growth, but it comes with its share of challenges. SEBI's proposed amendments to the ICDR and LODR Regulations aim to tackle concerns like misuse of IPO proceeds, inflated valuations, and governance lapses. In our latest blog, we delve into the key trends, challenges, and SEBI’s proposed reforms to strengthen financial metrics, enhance governance, and protect investors. Discover how these changes could shape the future of the SME IPO ecosystem! Read the full analysis here: SEBI’s Strategic Framework for SME IPO Market Challenges: https://lnkd.in/gVJQ8dFN Join the conversation! Share your thoughts on SEBI’s vision for a more robust and transparent SME market. #SMEIPO #SEBI #CorporateLaw #TheLordsConsultancy #Governance

📢 SEBI Proposes Key Changes for SME IPOs 🔹Minimum Subscription: Raised to ₹2,00,000 from ₹1,00,000. 🔹Allottees in Public Issues: Proposed increase to 200 minimum from 50 earlier. 🔹Offer for Sale (OFS): Capped at 20% of issue size. 🔹Fund Monitoring: Mandatory for issues over ₹20 Cr. 🔹Minimum Issue Size: Proposed at ₹10 Cr. 🔹Merchant Banker Fees: Must be disclosed in the prospectus. #SEBI #SMEIPO #MarketRegulation #Investments #IPOReforms

SME IPO Alert ! As per SEBI report, as of October 15, 2024, a total of 1024 companies have been listed on the SME platforms of BSE & NSE, with 322 companies migrating to the Main Board. In the current fiscal year till 15th OCT, over ₹5700 crores have been raised through 159 SME IPOs, showcasing the remarkable potential of the SME Platform. I have always believed that the introduction of the SME Platform has been a game-changer, providing professionally managed SME businesses with access to capital to scale their business. However, the SEBI Report also highlights areas where the platform might be vulnerable to misuse, and the regulator is taking proactive steps to strengthen the system. The consultation paper outlines recommendations that point to a more robust and fair framework for companies looking to tap the SME platform while safeguarding investor interests. Together with Suyog Narvekar, we’ve compiled a synopsis of the key recommendations from the SEBI consultation paper. This is an exciting time for SMEs, and we believe these changes will further empower businesses to grow responsibly and sustainably. #SME #IPO #SEBI #BusinessGrowth #InvestorProtection #CapitalMarkets

🚨 #SEBI’s Bold Move: Protecting Investor Interests 🚨 In a significant development, #SEBI recently cancelled an #IPO post-allotment, directing the company to refund investors and nullify allotted shares. This decision followed a complaint alleging dubious financial practices tied to the IPO's objectives. After a thorough investigation, #SEBI uncovered: 1️⃣ Diversion of funds through misleading objectives. 2️⃣ Misstatement of financial statements in the prospectus. 3️⃣ Concealment of material facts crucial for investor decision-making. This case stands out amidst the success stories of India's #IPO market, highlighting #SEBI's proactive approach as a vigilant watchdog. By prioritizing transparency and #investorprotection, SEBI reinforces confidence in the financial markets. #InvestorProtection #SEBI #IPOCancelled #TransparencyMatters #CorporateGovernance #IndianMarkets

From light regulation to accountability: How Sebi is rethinking SME IPO rules - Markets regulator Securities and Exchange Board of India (Sebi) has recently identified several concerns plaguing the SME space such as misuse of IPO proceeds, fund diversion, promoter exits - https://lnkd.in/gDZnhxd5

SEBI Tightens Scrutiny on SME IPOs SEBI is pulling no punches! 🥊 The market regulator has issued a stern warning to stock exchanges to ramp up due diligence for SME IPO approvals. This move aims to protect investors from potential risks and ensure only fundamentally strong companies enter the SME platform. While this might slow down the approval process, it's a crucial step towards building investor trust. The new cap of 90% on the opening price for SME IPOs is another measure to stabilize the market. Retail investors, beware! SEBI has emphasized the importance of conducting thorough research before investing in SME companies. Don't let attractive returns blind you to potential risks. #SEBI #SMEIPOs #InvestorProtection #CapitalMarkets #DueDiligence #FinancialMarkets Will it enhance investor protection or hinder SME growth?

Should Sebi encourage or discourage #SME IPOs? Indian SME space which generate maximum no of employment has been deprived of Risk capital, Thanks to SME IPO , now lots of risk capital has been flowing into SME space. Which will ultimately make the SME more stronger and help them in transformation …. Individuals investors are participating in SME #IPO which is good sign of economy, believe me in next 10 years SME IPO space will be much bigger than many capital market of other emerging country. Now its role and responsibility of #SEBI to safeguard the investor and market sentiments without distorting the growth. https://lnkd.in/dRfzneGx Download Economic Times App to stay updated with Business News - https://lnkd.in/dP9NYDS

Major changes suggest by SEBI for SME IPOs

SME IPOs are making news more and more. Is it actual interest or just lots of coverage though? A good way to gauge the strength of interest in SME IPOs is to compare them with Mainboard IPOs. Simply looking at the funds raised doesn't give the full picture. It's equally important to consider how much these SME IPOs have been oversubscribed. So, here are the numbers since April 2022. SME IPOs have accounted for around 6% of the total funds raised but have attracted a substantial 26% of total application amounts! 🙂