SEBI’s vicious assault on rural SMEs, farmers, and PSU banks

SEBI’s misinterpretation of the old Act threatens to cripple rural economies and destabilise banks. This isn’t regulation, it’s vendetta

- DEEPAK SANCHETY

SEBI has spent over a decade stumbling through a regulatory minefield of its own making, wielding a grossly distorted interpretation of Section 67 of the 1956 Companies Act like a blunt axe against India’s Small and Medium Enterprises (SMEs). particularly in the sugar industry.

By branding private placements to more than 50 investors in a single financial year as “Deemed Public Issues” (DPIs), the SEBI is unleashing a torrent of economic devastation, threatening farmers, banks, and rural economies. This isn't just a misstep—it’s a full-blown assault on rural India’s economic backbone, driven by a regulator who can't read the plain English of a statute and refuses to course-correct. SEBI’s actions are a masterclass in regulatory incompetence mixed with arrogance, and the fallout can be catastrophic.