'Won't speak on small, mid-cap valuations now'

AFTER flagging her concerns about the rising froth or "the irrational exuberance" in the midand small cap stocks a year ago, Sebi chairperson Madhabi Puri Buch, whose term ends by this month-end, has said she does not feel the need now for making a statement on the valuations of small- and mid-caps, which have tanked 20% from their peaks.

- BENN KOCHUVEEDAN

Addressing an Amfi event here on Friday, Buch said Sebi had made already a statement on small-cap and mid-cap valuations in 2024 as there was a need back then. Sebi had in February 2024 advised asset management companies (AMCs) to put in place a policy to protect investors in small- and mid-cap segments as the regulator had then felt that there was froth building up in the broader markets. "There are some companies and segments being re-rated today, which is a good thing. But there are others where the valuation parameters seem to be off the charts and not supported by fundamentals, which regulators call as irrational exuberance," she had said at an event in March 2024.