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SEBI probing mule accounts, faulty IPO applications - The Hindu BusinessLine

SEBI probing mule accounts, faulty IPO applications - The Hindu BusinessLine
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Sebi s department heads to use Gen AI to help with compliance monitoring

These two IPO market practices have come under Sebi scanner

Sebi Chairperson Madhabi Puri Buch has highlighted issues regarding mule accounts and inflated subscription numbers in IPOs and said that Sebi would act soon against wrongdoers 

sebi on ipo subscriptions: Sebi looking into against inflating IPO subscriptions: Buch

A mule account is basically a trading account maintained with a stock broker or a dematerialized account or bank account linked with such trading account in the name of a person, where the account is effectively controlled by another person, whether or not the consideration for transactions in the account are paid by such other person.

grey market premium: SME IPOs fully regulated, don t get influenced by GMP: Investment banker

"Just like mainboard IPO regulations, SME IPOs are also fully regulated. The disclosure which is required to file for mainboard IPOs are mandatory for SME IPOs as well. Investors have enough information about SMEs to make an informed decision regarding their investments. We expect a flurry of IPOs in the second half of the financial year 2023-24, building on the trend of the last few months."

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