Bourses call for better checks to improve scrutiny before IPO filing

Stock exchanges are urging investment bankers to enhance scrutiny and ground checks before filing IPO documents, especially for SMEs. This follows SEBI's directive to halt the listing of a recent SME firm due to complaints. BSE's CEO emphasized the need for thorough due diligence, including site visits and financial verifications. The NSE has also updated eligibility conditions, requiring positive free cash flow for at least two of the three preceding financial years. These measures aim to curb speculation and ensure the quality of IPOs, addressing concerns over discrepancies and violations in SME issuances.