While SEBI has raised concerns about potential price manipulation in the SME segment, it's important to not lose sight of the positives that this sector offers. SME Capital markets represent an important opportunity for smaller companies to access equity capital, a critical resource that was previously challenging to secure. These enterprises, despite their smaller IPO sizes, have shown resilience and potential, with several noteworthy companies making successful debuts on SME exchanges. While the smaller size of SME IPOs does make these companies more susceptible to market manipulation, it's crucial to highlight the broader context of opportunity and growth. Recognizing the importance of transparency and investor protection, the SME exchanges have proactively enhanced disclosure norms in the offer documents.
Investors, therefore, should maintain confidence in the potential of high-quality SMEs, viewing them as valuable components of a diversified investment portfolio, despite the inherent risks associated with their smaller scale.
-- Manick Wadhwa, Director at SKI Capital.
Comments
Post a Comment