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Informist, Tuesday, Jan. 21, 2025

 

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--SEBI Buch: Growth in capital markets rests on trust of the investor
--SEBI Buch: Whistleblowers come only when it's convenient for them
--SEBI Buch: Mkts deployed resources to ensure compliance with spirit of law
--CONTEXT: Comments by SEBI Chairperson Madhabi Puri Buch at event
--BSE MD: Only financially viable SME cos should get listed
--CONTEXT: Comments by BSE MD Sundararaman R at an event
--NSE Chauhan: Must not drop the guard in carrying out regulatory duties
--CONTEXT: Comments by NSE MD Ashish Chauhan at an event
--NSE Chauhan: Many SME listing pleas returned, withdrawn due to deficiencies
--NSE Chauhan: Seen some gaps in due diligence of a few IPOs
--NSE Chauhan: There are some concerns on SME listings
 

 

MUMBAI – Securities and Exchange Board of India Chairperson Madhabi Puri Buch Tuesday asked merchant bankers to only bring financially viable companies to the market. The market regulator was flagging multiple "pump and dump" instances in the market at the 13th AIBI Annual Convention 2024-25.

 

"You know already, if you're bringing a bad company to the market to do pump and dump," Buch said.

 

Speaking specifically on the listing of small and micro enterprises, BSE Managing Director Sundararaman Ramamurthy said that only financially viable companies should get listed.

 

Out of 250 applications made by such companies for listing, 78 applications were either withdrawn or returned due to deficiencies and inadequacies in those documents, said Ashish Chauhan, managing director of National Stock Exchange of India. One must not drop the guard in carrying out regulatory duties as there are some gaps and concerns around listing of small and medium enterprises, he added.

 

The quality of documentation also has several gaps, Buch said. "We are like a doctor who sees ill patients all day, you won't believe the kind of egregious things we see," she said.

 

Buch said some whistleblowers approach the regulator only when it's convenient for them. "Every single employee, in theory, can be a whistleblower," Buch said.

 

SEBI is seeing a lot of misuse of the initial public offering proceeds, Buch said. "We have seen such egregious use of money, and it all goes back to related party transactions, layered transactions particularly with overseas subsidiaries and all of this goes into purchase of things which won't have any tangible evidence."

 

Buch said markets have deployed resources to ensure compliance with spirit of law and the growth in capital markets rests on investor trust.  End

 

Reported by Kshipra Petkar and Kabir Sharma

 

Edited by Ashish Shirke

 

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