SEBI considers stricter regulations for micro-cap IPOs due to fraud incidents and surge in listings.
India's Securities and Exchange Board (SEBI) is contemplating stricter regulations for micro-cap firms seeking to go public, in response to fraud incidents and a surge in micro-listings. Proposed measures include longer profitability records, enhanced scrutiny of financial statements, and tighter due diligence for merchant bankers. While SEBI won't assume listing approval from stock exchanges, it plans to introduce revised listing rules for small and medium enterprises by year-end.
September 12, 2024
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