Sebi chief flags bubble in midcap, smallcap space

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Sebi plans to bring in more disclosures on risk factors and allow T+ 0 trade settlement.ANI..

The Securities and Exchange Board of India (Sebi) chairperson, Madhabi Puri Buch, on Monday raised concerns over stretched valuations of small- and mid-cap stocks, which are generally favoured by retail investors and have continued to enjoy their patronage through monthly purchase mandates to mutual funds built around such investment themes...

So, when they burst, they impact the investors adversely and thats not a good thing, she said.. Sebi and the AMFI (Association of Mutual Funds in India) have directed mutual funds to provide additional disclosures for small- and mid-cap funds from this month...

For investors to understand the SME segment is different from the main board, the regulations are different, the disclosures are different, and therefore the nature of the risk is different, I think it is important for Sebi to underline that in terms of disclosures to the investors, Buch said.. Sebi also plans allowing T+ 0 trade settlement for equities on an optional basis by March 28, Buch said.. T+ 0 would allow trades to be settled on the same day..

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