BSE SME IPO index cracks over 2% as Sebi raises eyebrows over price manipulation

The S&P index plunged 2.3% to 56017.74. Shares of , , , , , and were the big laggards in this space, dropping 6-14%.

Buch further said that Sebi has been monitoring price manipulation instances in , and may consider implementing disclosures as a starting step concerning .

The SME segment saw a flush of public offers over the past year, with many of them garnering overwhelming responses from retail and non-institutional investors.

In the last year, the S&P BSE SME IPO index has rallied 127%, outperforming the benchmark Sensex by a significant margin. According to Trendlyne data, 40 companies have already made their stock market debut this year, with 30 coming from the SME segment.

The irrational exuberance in the SME segment caught Sebi’s eyes last year, which prompted the regulator to extend the trade-for-trade settlement framework and short-term additional surveillance measure (ASM) to include SME stocks with effect from October 3, This move was aimed at curbing potential price manipulation.

Sebi chief Buch also raised concerns over the stretched valuations of small- and mid-cap stocks and the large inflows into mutual funds investing in these segments. The regulator asked asset management companies to come out with a framework to check on the same.

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