Sebi plans review of rules governing SME IPOs

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• A working group formed by Sebi to examine problems related to the SME platform has lately submitted its report to the regulator.
• The Economic Times daily newspaper is available online now.
• Sebi intends a comprehensive review of IPO rules for small and medium businesses.
• Separately, he remarked the new system for determining the closing costs of most frequently traded securities detects manipulation much faster than was feasible with the earlier mechanism.

Meanwhile, the Economic Times daily newspaper is available online now. Sebi intends comprehensive review of rules governing SME IPOs. Sebi intends comprehensive review of rules governing SME IPOs. By ET BureauLast Updated: Aug 20, 2026, 06: 11: 00 AM IST.

Sebi intends a comprehensive review of IPO rules for small and medium businesses. Market making and underwriting systems are identified as areas needing attention. A working group has submitted its report on the SME platform to the regulator. Sebi will shortly release a consultation paper regarding the SME platform. In practice, the regulator additionally seeks to backing global fund management activities from India. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. Subscribe Now Already a member? Sign In.

Mumbai: The Securities and Exchange Board of India (Sebi) has planned a comprehensive review of rules governing IPOs by small and medium firms, its chief, Tuhin Kanta Pandey, stated Wednesday. Separately, he remarked the new system for determining the closing costs of most frequently traded securities detects manipulation much faster than was feasible with the earlier mechanism. "Issues such as market making were adding to the cost for small-company IPOs, " Sebi chairman remarked at an industry event. The underwriting system is another area that needs attention, he remarked, adding that it is not working effectively and businesses are having to bear significant costs.

Notably, a working group formed by Sebi to examine problems related to the SME platform has lately submitted its report to the regulator. Sebi will be coming out with a consultation paper shortly on the SME platform. "If someone is on the SME platform, obviously we do not want them to incur higher costs. But the cost is significantly higher compared with the mainboard, " Pandey remarked.

For now, sebi plans review of rules governing SME IPOs remains the part of the story worth watching, and further updates are likely as more details are confirmed.