- As per market grapevine, SEBI needs regulatory overhaul: a) Pre-IPO lock-in disparity is unfair (6 months mainboard vs 12 months SME). Parity needed. b) CAT III AIF lock-in should align with others; selling on listing day is unjust. c) Rights issues should mandate full promoter participation to protect retail investors.
- As per market grapevine, SME malpractices need urgent checks: Cashback of 10–50% to operators, misuse of IPO funds via inflated working capital, fake bills, and negligible capex are rampant. Working capital usage should be capped at 20–25% of IPO size to curb misuse.
- Alert: Labour code impact is emerging as a serious issue for SMEs and private companies, hitting EPS directly through P&L, not reserves. Valuations may de-rate and FIIs could turn cautious again.
- Alert–Alert–Alert: Teerth Gopicon crashed from Rs.774 to Rs.61 in one year. Pump-and-dump activity is evident across many SME stocks despite strong results and optimistic presentations. Several SME stocks are down 50–90% from issue or listing prices. Avoid SMEs unless backed by genuine insights.
- Market wisdom: “Successful trading isn’t about prediction, but discipline, risk management, and emotional control.”
