Sebi Warns About Risky SME Promoters
Since 2012, SMEs have raised over Rs 14,000 crore, with Rs 6,000 crore raised last fiscal year.
Sebi has noted that some SMEs use misleading tactics to deceive investors.
Sebi has cautioned investors about unscrupulous SME promoters who inflate stock prices to attract investors before exiting.
Since 2012, SMEs have raised over Rs 14,000 crore, with Rs 6,000 crore raised last fiscal year.
The NSE has now mandated that SMEs must have positive free cash flow to list.
Sebi has noted that some SMEs use misleading tactics to deceive investors.
Recently, Sebi took action against Debock Industries and its promoters for manipulating business figures through related-party transactions, leading to illegal gains of Rs 89.2 crore and leaving investors with devalued shares.
In its latest press release, SEBI urged investors to be watchful and cautious while investing in securities. It also requested investors to not trust unverified social media posts and not to make investment based on tips and rumours.
