The oversubscription of the SME segment IPO has raised concerns for the market regulator Securities and Exchange Board of India (SEBI). Meanwhile, Whole-Time Member Ashwini Bhatia said that the market regulator is not satisfied with what is happening in the SME IPO space and is upset with how the IPO is getting so much subscription. He further said that a discussion paper is being worked on regarding Small and Medium Enterprises (SME) IPO and it will be published soon. Ashwini Bhatia has advised retail investors to be cautious about the SME IPO space.
 

Why concerns increased
SME IPOs have been in the limelight for the last 18 months. But concerns increased more when a company with only two Yamaha showrooms in New Delhi received bids of Rs 4,800 crore for an IPO of Rs 12 crore. Apart from this, more than 160 SME IPOs received bids of Rs 3 lakh crore in 2023. While their target was to raise Rs 4,500 crore. Investor safety is first for SEBI Ashwini Bhatia also talked about large retail participation in the futures and options space and said that India has the highest F&O business at the global level. This is an option which we should not use much. He further said that F&O cannot be a good option, so investors should make serious investments and contribute to wealth creation. Ashwini said that investor safety is first for SEBI.