SME platform reforms: Sebi focuses on safeguarding retail investors

The regulator had in May 2010 prescribed a revised framework for setting up a stock exchange or a trading platform (by the existing stock exchanges) with terminals across the country for SMEs

The Securities and Exchange Board of India (Sebi) has done well to initiate a review process of initial public offerings (IPOs) and post-listing regulation of small and medium enterprises (SMEs). This week, the regulator published a consultation paper with proposals to strengthen the framework governing SME listings. There has been concern regarding the conduct of some SMEs, and the review is necessary also because the terms for going public were kept liberal to contain the compliance burden for relatively small companies. But now that the market has been functioning for a while, reviewing the processes and strengthening the system makes