Sebi issues warning against SME stocks as IPOs leave investors dumbfounded

Sebi highlighted that certain corporate actions can artificially boost investor sentiment, leading to increased stock purchases. This, in turn, allows promoters to sell their shares at inflated prices. The regulator cautioned investors against relying on unverified social media posts and rumours when investing in SME stocks. Instead, investors should exercise caution and be mindful of such market manipulation patterns.