SME IPO stocks tumble as SEBI flags concerns over price manipulation
Small and medium-sized enterprises (SME) IPO stocks were under selling pressure on Monday’s session after Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch made remarks about stock manipulation in many firms at The BSE SME IPO slumped over 3% on Monday.
As per CNBC TV18 news report, SEBI’s chairman stated on Monday, March 11, that the regulatory body intends to impose more disclosures as a first step with regard to SME IPOs.
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Buch expressed concerns about instances of price manipulation that were seen at the IPO and trading levels with regard to specific SME IPOs. She also emphasised the need for more market openness and monitoring, according to a CNBC TV18 news report.
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Just ten companies in the SME category saw gains during Monday’s session, while 50 stocks were in the negative. During the Monday session, shares in Benchmark Computer Solutions Ltd, Asarfi Hospital Ltd, Hemant Surgical Industries Ltd, Techknowgreen Solutions Ltd, ITCONS E-Solutions Ltd, and Siyaram Recycling Industries Ltd fell between 8% and 15%.
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According to the news report, Buch said that SEBI keeps a close eye out for instances of price manipulation during trading operations as well as during IPOs, particularly with regard to SME IPOs.
Buch reiterated that there was no indication of coordinated attempts in any recent instance in answer to a question about particular situations.
She gave assurances that authorities are consistently and diligently exchanging information, enabling independent measures to be implemented in order to preserve market integrity. Also, she emphasised the need to apply algorithm-based compliance checks to all market intermediary categories.
Trendlyne data shows that the S&P BSE SME IPO was down -3.28% intraday, with the index falling -6.14% over the previous week. The index rose by 122.16% over the previous year and by 21.02% during the most recent quarter.
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Published: 11 Mar 2024, 04:07 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.