Ashwani Bhatia, a Whole-time Member of the Securities and Exchange Board of India (SEBI), has expressed concerns about the small-and-medium enterprises (SME) segment of the capital market.

Bhatia stressed the importance of regulation in this sector, cautioning against detrimental practices driven by the pursuit of market capitalisation.

He acknowledged the significant growth of the SME segment, with market capitalisation on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) reaching Rs 2 lakh crore.

However, Bhatia highlighted corporate governance issues within some of these companies, emphasizing the need for enhanced oversight to protect investors and ensure sustainable market growth.