Heard on the Street: Sebi crackdown on small IPOs eases worries

Market watchdog Sebi's crackdown on the recent small-size IPOs has come as a relief to exchanges, which are launching their trading platform for small and mid-sized companies. Last year, when such small IPOs were a rage, stock operators and small-time merchant bankers were hoping to move their 'operations' to SME exchanges. They were tempted by the faster approval process for SME listings compared with normal listings, which take over eight months to get Sebi approval. However, after Sebi's recent probe into fraudulent IPOs resulted in many merchant bankers and stock brokers being banned from the market, the operator groups have wrapped up their foray into the SME segment. Exchange officials are relieved as they were worried that the fraud listings would taint the reputation of the already-delayed SME platforms.

Source: Economic Times