Sebi mulling lower limit of Rs 100 mn m-cap for firms to stay listed

The Securities and Exchanges Board of India may be planning to impose a minimum market capitalisation (m-cap) requirement of Rs 100 million for companies to stay listed, Livemint reported, citing sources. The move is said to be aimed at removing penny stocks from the markets.

Penny stocks are generally valued under Rs 10. These stocks are said to be highly risky because of their low liquidity. Their market capitalisation is usually very less.

In the past, the market regulator and income tax department have unearthed huge scams that were carried out using penny stocks. 11,000 cases of penny stock abuse came