Sebi's trading, delisting regulations for IBC firms don't help investors

To protect retail investors from price rigging and manipulation, the stock market regulator along with exchanges recently put over 109 stocks under surveillance

Retail investors owning shares of companies undergoing insolvency proceedings need to watch out. The stock market regulator, the Securities and Exchange Board of India (Sebi), has imposed restrictions on the trading of these stocks. It has also relaxed the norms for their delisting. Many existing investors in these companies could end up getting the short end of the stick owing to these changes.

According to some market experts, the regulations indicate that the regulator wants retail investors to stay away from stocks going through insolvency proceedings, so that they don’t end up losing money. And it’s for a good reason.