IPOs in India
SME IPOs and the Risks
Small companies can list on special SME platforms, which attract retail enthusiasm but also carry higher risks of manipulation.
A separate market for small firms.
SME platforms
NSE Emerge and BSE SME let small firms raise money with lighter requirements.
Boom
Many SME issues saw huge subscriptions and big listing gains.
Risks
Thin trading, tips and manipulation have led SEBI to tighten checks.
Advice
Investors should read documents and avoid tips.
A viral tip
A social media influencer hypes a small IPO, and the price rises then crashes.
Investing on tips
Always read the prospectus.
Key takeaways
- SME platforms serve small firms.
- They attracted retail crowds.
- Manipulation risks exist.
- SEBI has tightened checks.
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