Be extra cautious while approving SME IPOs, Sebi tells exchanges

The Securities and Exchange Board of India (SEBI) has advised stock exchanges to exercise greater caution when approving initial public offerings (IPOs) from small and medium enterprises (SMEs). SEBI's directive comes in light of increasing scrutiny over the quality and transparency of SME listings. The regulator emphasized the importance of thorough due diligence and stringent verification processes to ensure that only well-qualified and compliant firms are allowed to list. This measure aims to protect investors from potential risks associated with underperforming or non-compliant SMEs, enhancing the credibility and stability of the SME IPO market.