SEBI Tightens SME IPO Norms, Announces Launch of ‘PaRRVA’ Performance Validation Agency
SEBI tightens listing norms for SME IPOs to enhance transparency and governance. Announces launch of ‘PaRRVA’, a performance validation agency, during its December 18 board meeting.
Mumbai: The Securities and Exchange Board of India (SEBI) has introduced stricter listing regulations for small and medium enterprises (SMEs) launching initial public offerings (IPOs). The decision was made during SEBI’s board meeting held on Wednesday, December 18.
In a significant move to bolster market transparency and accountability, the capital markets regulator also announced the creation of a dedicated performance validation agency named ‘PaRRVA’. This agency will evaluate and validate the performance of SMEs post-listing, ensuring compliance with listing standards and protecting investor interests.
The revised SME IPO norms aim to address gaps in existing regulations and promote greater trust in the SME segment, which has seen increasing investor participation in recent years.
These changes underscore SEBI’s ongoing commitment to strengthening India’s capital markets and enhancing governance frameworks for smaller enterprises accessing public capital.
What's Your Reaction?
