SEBI Strengthens SME Listing Norms

29 November 2024

SEBI is looking after the investors in SME IPOs! 

• The recent reforms proposed by SEBI for SME IPOs are a significant step towards enhancing investor confidence and ensuring a more transparent and robust market environment. One of the primary motivations behind these changes is to address the growing concerns over the misuse of funds and promoter misconduct. These measures are designed to prevent fund misutilization and ensure that the capital raised is used for genuine business growth and development. 
  
  
• SEBI has recently published white paper on proposals where the first part is related to IPO at SME Exchange and conditions of migration from SME platform to Main Board post-listing. The second part deals with corporate governance norms, including post-listing disclosures by issuers listed on SME Exchange. Comments on the same may be submitted by December 4, 2024. Overall, SEBI's reforms are a comprehensive effort to strengthen the SME IPO framework, making it more resilient and trustworthy for investors.