NEW DELHI: The Securities and Exchange Board of India (Sebi) on Wednesday announced stricter regulation for small and medium enterprises (SMEs) initial public offerings (IPOs) to address concerns around transparency, governance, and the misuse of funds in the SME segment.
The market regulator said that these will strengthen the SME IPO market, improve the quality of listing quality and safeguard investors.
As per the newly approved guidelines, the companies seeking SME exchange listing must show an operating profit (earnings before interest, depreciation, and tax – EBITDA) of Rs 1 crore in a minimum of two out of the previous three fiscal years when submitting their Draft Red Herring Prospectus (DRHP) , ensuring only financially robust and reliable companies access the market.
The regulations also limit selling shareholders from divesting beyond 50% of their stake during the initial public offering. Sebi also said that the offer for sale portion cannot exceed 20% of the total issue size.
Additionally, the watchdog also imposed restrictions on IPO proceeds utilisation. Companies are now prohibited from using these funds to settle loans from promoters, directors or associated parties, ensuring proper fund utilisation. The amount allocated for general corporate purpose (GCP) is capped at 15 per cent of the total issue size or Rs 10 crore, whichever is lower.
Also, the methodology of allocation for non-institutional investors (NIIs) in SME IPOs will be like the approach followed in main-board IPOs and the DRHP requires a 21-day public comment period.
Companies must advertise in newspapers and incorporate a QR code to facilitate easy DRHP access. The SME firms can secure additional funding without transitioning to the main board, provided they adhere to Sebi (LODR) regulations applicable to main board-listed organisations.
Companies listed on the SME platform must follow the same related party transaction (RPT) guidelines as those listed on the main board.
However, Sebi did not mandate a minimum size for the issue or the least required subscription for small business IPOs.
Earlier in November, Sebi in a consultation paper proposed to raise the minimum application size for the IPOs of SMEs to Rs 200,000 rupees from Rs 100,000.
Despite small and medium enterprises securing unexpected capital this year, issues regarding market inflation, corporate governance and share price manipulation attracted regulatory attention.
Sebi recently cancelled Trafiksol ITS Technologies’ SME IPO and instructed the firm to return investors’ funds, citing significant inaccuracies in the prospectus and suspected collaboration with a shell organisation.
In October, BSE delayed Trafiksol ITS Technologies’ SME platform listing following investor concerns. The Rs 45 crore IPO received overwhelming response with 345 times oversubscription, generating bids exceeding Rs 10,000 crore.
Small enterprises with yearly revenue between Rs 5 crore and Rs 250 crore list on separate segments of the BSE and NSE. These listings face reduced disclosure requirements and are cleared by exchanges, unlike larger IPOs which requires Sebi clearance.
This year approximately 230 SMEs raised Rs 8,414 crore, out of which 126 IPOs received subscription exceeding 100 times, and the average bids doubled to 178 times.
Meanwhile, Sebi also also announced measures to enhance operational efficiency for Debenture Trustees, ESG rating providers, InvITs, REITs, and SM REITs. It also opted to revise investment banking regulations.

Indian Railways is planning to launch Vande Bharat sleeper trains on several long routes with the public transporters already awarding manufacturing of 200 rakes and 10 Vande Bharat Sleeper trains to technology partners. “At present, 10 Vande Bharat Sleeper trains are under production for long and medium distance journeys in the country. The first prototype has been manufactured and will undergo field trials. In addition, manufacturing of 200 Vande Bharat Sleeper Rakes have also been awarded to Technology partners,” informed Railways Minister Ashwini Vaishnaw to the Lok Sabha.

The timeline of the rollout of the train is subject to the successful completion of the trials. As of 02nd December 2024, 136 Vande Bharat train services are operational on the Broad Gauge electrified network of Indian Railways for short and medium-distance journeys across the country.

Vaishnaw, in a statement laid on the table of the House of Lok Sabha, said that in order to give a world-class travel experience, 136 Vande Bharat train services, having Chair Cars, are currently operational on the Broad Gauge electrified network of Indian Railways; up to October 2024 overall occupancy of Vande Bharat Express trains is more than 100%.

In reply to another question, the Union Minister said that the production units of Indian Railways are producing only LHB coaches from April 2018 onwards. The production of LHB coaches has continually increased over the years. The number of LHB coaches manufactured during 2014-24 is more than 16 times (36,933) the number manufactured (2,337) during 2004-14. Indian Railways (IR) has proliferated LHB coaches which are technologically superior with features like anti-climbing arrangement, Air suspension with failure indication system and less corrosive shell.

As part of the “Sugamya Bharat Mission” (Accessible India Campaign), Indian Railways is making significant strides in ensuring accessibility for Persons with Disabilities (Divyangjans) and passengers with reduced mobility. Under the guidelines of the Rights of Persons with Disabilities Act, 2016, comprehensive facilities have been provided like ramps, accessible parking, Braille and tactile signages, low-height counters, and lifts/escalators, said the railways. 

As per the Ministry of Railways statement, till November 2024, Indian Railways had installed 1,512 escalators across 399 stations and 1,607 lifts at 609 stations, marking a remarkable growth compared to the previous decade—an increase of 9 and 14 times, respectively. Further, dedicated coaches with wide entrances, accessible washrooms, and wheelchair parking are available on most Mail/Express trains while Vande Bharat trains offer enhanced accessibility with features like automatic doors, earmarked spaces, and Braille signage for Divyangjan.

The US Fed will likely lower borrowing costs for a third-straight meeting this week while also signalling fewer interest-rate cuts next year.

The US Federal Reserve Chairman Jerome Powell will announce key policy decisions on Thursday after a two-day Federal Open Market Committee (FOMC) meeting.

The meeting assumes significance as the United States heads into Donald Trump’s presidency from January 20, 2025.

What to expect?

The US Central Bank is expected to cut benchmark rates by a quarter percentage point. This move would bring the central bank’s lending rate to 4.25% to 4.5%, from the current 4.5% to 4.75%. This would also leave the benchmark rate above the 2.9% median estimate, where the rates are expected to settle in the long term.

Experts would also watch for the central bank’s language in its post-meeting policy statement. The Fed is expected to signal fewer interest-rate cuts next year than projected.

“As you get closer to the upper bound of those estimates, it makes sense from the Fed’s perspective to move more slowly as it assesses where it is in the policy cycle,” Tim Duy, chief US economist for SGH Macro Advisors, told Bloomberg.

The report also noted that falling inflation and a slowdown in the weakening of the labour market could prompt the Fed to announce the rate cut. This means policymakers may upgrade their outlooks to show higher inflation, lower unemployment and stronger economic growth in their updated forecasts for 2024.

Better-than-expected economic data on whether the Fed’s neutral rate is now higher. The neutral rate is when the central bank is neither boosting nor slowing down the economy through its policy actions.

When the Fed reduces interest rates, it typically refers to the federal funds rate, the interest rate at which banks lend to each other overnight. This key interest rate influences overall economic activity and is a fundamental tool for monetary policy.

Where to watch the meeting live?

The press conference can be watched live on the US Federal Reserve’s official website at federalreserve.gov/live-broadcast.htm. It will also be telecast on the central bank’s YouTube channel and other social media platforms.

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NEW DELHI: Investment bank DAM Capital Advisors on Wednesday said it has raised Rs 251 crore from anchor investors, a day before opening of its initial share-sale for public subscription. Nomura, Goldman Sachs, HSBC, Societe Generale, Nippon India Mutual Fund (MF), HDFC MF, Kotak MF, and Aditya Birla Sun Life MF are among the anchor investors, according to a circular uploaded on the BSE website.
As per the circular, DAM Capital has allotted 88.86 lakh shares to 33 funds at Rs 283 apiece, which is also the upper end of the price band. This aggregates the transaction size to Rs 251.48 crore.
The initial share-sale, with a price band of Rs 269-283 per share, will open for public subscription on December 19 and conclude on December 23.
The IPO is solely an offer-for-sale (OFS) of 2.97 crore equity shares worth Rs 840.25 crore, by a promoter and investors at the upper end of the price band, with no fresh issue component.
Those selling shares in the OFS are promoter Dharmesh Anil Mehta, investors Multiples Alternate Asset Management, RBL Bank, Easyaccess Financial Services, and Narotam Satyanarayan Sekhsaria.
Since the entire issue is an OFS, all the proceeds from the IPO will go directly to the selling shareholder, rather than to the company.
In its draft papers, the company stated it plans to go public to achieve the benefit of listing equity shares on the stock exchanges and allow selling shareholders to sell their shares through the OFS.
At the upper end of the price band, the company’s market capitalisation has been pegged at Rs 2,000 crore.
Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
DAM Capital Advisors provides a wide range of financial solutions in areas of (i) investment banking comprising equity capital markets (ECM), mergers and acquisitions (M&A), private equity (PE), and structured finance advisory; and institutional equities comprising broking and research.
Headed by Mehta, DAM Capital Advisors is a leading investment bank in the country with a market share of 12.1 per cent based on the number of IPOs and qualified institutional placements undertaken by it as the book-running lead manager in FY24, according to a Crisil report.
Nuvama Wealth Management is the sole merchant banker for the issue. The equity shares of the company are expected to be listed on December 27 on the BSE and the NSE.

New Delhi: The Central Consumer Protection Authority (CCPA) has issued 325 notices for violation of consumer rights, misleading advertisements and unfair trade practices, imposing penalties amounting to Rs 1.19 crore to date, the Parliament was informed on Wednesday. 

Union Minister of State for the Ministry of Consumer Affairs, Food and Public Distribution, B.L. Verma, said in a written reply in the Lok Sabha that the Department of Consumer Affairs is continuously working for consumer protection and empowerment of consumers by an enactment of progressive legislation.  “With a view to modernise the framework governing consumer protection in the new era of globalization, technologies, e-commerce markets etc. Consumer Protection Act, 1986 was repealed and Consumer Protection Act, 2019 was enacted,” he said.

To safeguard consumers from unfair trade practices in e-commerce, the Department of Consumer Affairs has also notified the Consumer Protection (E-commerce) Rules, 2020 under the provisions of the Consumer Protection Act, 2019.

On Tuesday, the Parliament was informed that the CCPA imposed penalties of Rs 61.60 lakh on 19 coaching institutes and issued notices to 45 coaching centres for misleading advertisements.

In November, the regulator had issued “Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024” in order to prevent coaching centres from making false or misleading claims and advertisements to promote the sale of goods or services and engage in deceptive or unfair practices.

The National Consumer Helpline (NCH), administered by the Department of Consumer Affairs, has emerged as a single point of access to consumers across the country for their grievance redressal at a pre-litigation stage.

As many as 1,004 companies, who have voluntarily partnered with the NCH, as part of the ‘Convergence’ programme, directly respond to these grievances according to their redressal process, and revert by providing feedback to the complainant on the portal. Complaints against those companies, who have not partnered with the NCH, are forwarded to the company’s email ID for redressal.