Initial public offerings: Why retail investors should be wary of SMEs
SummaryThe SME segment has attracted the interest of retail investors but experts say there is reason to be cautious.
On Monday, market regulator Securities and Exchange Board of India (Sebi) launched new investor protection measures covering small and medium enterprises (SMEs). It extended the applicability of Additional Surveillance Measure (ASM) and Trade for Trade (T2T) regulations to the SME segment, following consultations with stock exchanges. These measures were previously limited to mainboard stocks—those listed on the primary market.