Sebi warns investors about manipulative practices in SME markets, discouraging reliance on unverified social media.
India's markets regulator, the Securities and Exchange Board of India (Sebi), has warned investors about manipulative practices in Small and Medium Enterprises (SME) markets. Some SME companies and their promoters create a positive image of their operations via public announcements and then engage in corporate actions like bonus issues, stock splits, and preferential allotments. This results in a positive sentiment among investors, encouraging them to purchase securities at higher prices, allowing promoters to sell their holdings. Sebi urges investors to exercise caution and not rely on unverified social media posts or tips/rumors.
August 28, 2024
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