SEBI’s Madhabi Puri Buch on Small-Mid Cap Valuations

Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), stated that there is currently no need to address small- and mid-cap valuations. Speaking at an AMFI event in Mumbai on February 21, 2025, Buch highlighted that SEBI had flagged concerns about market froth in these sectors a year ago.

Buch emphasized that the regulatory body closely monitors market trends and valuations to ensure stability and investor protection. She acknowledged that the small- and mid-cap segments had experienced significant growth and valuation increases over the past year. However, she reassured investors that the current market conditions do not warrant immediate regulatory intervention.

The SEBI chairperson’s comments come in the context of a broader discussion about market dynamics and investor behavior. Buch underlined the importance of market participants conducting thorough due diligence and making informed investment decisions. She also reiterated SEBI’s commitment to fostering a transparent and fair market environment.

Buch’s address aimed to instill confidence among investors and stakeholders, emphasizing that SEBI remains vigilant and proactive in its regulatory oversight. Her remarks reflect SEBI’s balanced approach to market regulation, ensuring both market growth and investor protection.