Does Sebi Tag in an IPO Ensure Safety of Investment
Updated on March 8, 2023
SEBI is the governing body that regulates the stock markets and all the transactions in it. However, do these regulations guarantee that the security is safe to invest in and investors’ money is safe?
Does SEBI approval guarantee the safety of money?
An IPO is made available for public subscription after adhering to stringent rules of SEBI, Companies Act, 2013, Stock exchanges, and more. However, not every IPO may be a good investment opportunity. Therefore, it is crucial for investors to do due diligence on the company and the offer made under the IPO to ascertain if investing in the company is a good decision. Even a company with good fundamentals and strong demand for shares post-IPO may take a hit in a volatile market and the investors may end up losing their money. Therefore, SEBI tag does not guarantee the safety of money and the investment made by investors.