SEBI is tightening oversight of small and medium enterprise (SME) stock platforms on Indian exchanges in response to high volatility. The SME IPO Index has surged nearly 1,900% since late 2019, vastly outperforming the 59% gain of the BSE Sensex index. In contrast, major Indian equity gauges have hit record highs. Exchanges have extended short-term surveillance rules covering price bands, margins, and immediate trade settlements to SME firms listed on their platforms. About 135 SME companies have debuted on the stock market this year alone, with 20 more in the pipeline. Regulators are concerned about the greater potential for price manipulation in the less regulated SME segment, which attracts significant retail investor interest.
Arush Sarna, who exposes fake stock market gurus, was caught in a recording discussing an illegal portfolio management service without a license. He denied running such a service, but the recording indicates he screens potential clients and manages their accounts based on their financial status. Another vigilante, Zubare Khan, was aware some operate illegal PMS through trading account access instead of money transfers, which is hard to prove. When confronted, Sarna claimed he only manages friends’ and family’s accounts without payment. However, in the recording, he refers to taking a cut, and it’s suggested he may have caused losses to at least one client without proper licensing or disclosures. The article highlights the risks of unregulated money management services online.
A nutrition think tank called Nutrition Advocacy in Public Interest has recommended that the Indian government levy a “sin tax” on packaged foods that are high in sugar, fat and salt, such as biscuits, instant noodles, and ice cream. The think tank analyzed 43 popular food products and found that most were high in at least one of these unhealthy nutrients. Several major food companies were called out for aggressively advertising these ultra-processed “junk foods” and for disguising nutritional information on packaging. The report recommends stronger regulations on food marketing to curb consumption and rising obesity and diabetes rates. It also suggests finalizing front-of-package labeling rules and defining what constitutes misleading health claims. The ultra-processed food industry has seen rapid growth in India in recent years.