BSE said to push for tighter scrutiny of SME listings: Report

Stock exchange operator BSE Ltd. has told bankers to increase their oversight of the initial public offering applications of small companies, after the exchange found discrepancies in the filing documents of some recent deals, according to people familiar with the matter.

Sundararaman Ramamurthy, BSE’s chief executive, told bankers on Tuesday to ensure IPO hopefuls aren’t inflating their numbers, the people said, requesting not to be named because they aren’t authorized to discuss the meeting. He also asked bankers to put more effort into assessing potential listing candidates in-person, including visiting company premises, they said.

The move is an attempt to improve standards in a segment of India’s booming IPO market that has attracted a surge of retail investment, while also alarming regulators. India’s market regulator said in August that investors should exercise caution when buying shares of SMEs, adding that some companies and their majority stakeholders had misrepresented their operations.

A spokesman at BSE Ltd. didn’t immediately respond to emailed queries on the discussions