Madhabi Puri Buch, the chairman of Sebi, stated on Monday that "signs" of price manipulation in the Small and Medium Enterprises (SME) segment are being observed by the capital markets regulator.

Buch cautioned investors, saying there is manipulation during both the initial public offering (IPO) and trading.

"We have the technology to manipulate prices, and we do see the warning signs." Certain patterns are visible to us. "I would say that it is still on the kitchen table; it hasn't been put in the oven yet," Buch said to a group of female journalists outside of this meeting.

She added that if the capital markets regulator discovers any malpractices, the next step might be to release a public consultation on the matter. The agency is now collaborating with advisers to comprehend all the aspects and analyze the data.

According to her, investors must recognize that the SME segment differs from the main board, and Sebi must emphasize this distinction when it comes to the laws governing investor disclosures.

She went on to say that there are variations in the laws controlling the SME sector, the disclosures, and consequently, the type of risk.