India's securities regulator, worried about malpractice in a frothy IPO market, is investigating six domestic investment banks that have worked on offerings by small businesses, two sources with direct knowledge of the matter said.

Mumbai/IBNS: India’s securities regulator, the Securities and Exchange Board of India (SEBI), is investigating six domestic investment banks over concerns about malpractice in the country’s booming IPO market for small businesses,

Sebi's is investigating six domestic investment bankers that have worked on offerings by small businesses, reported Reuters citing two sources with direct knowledge of the matter.

SEBI is investigating six domestic investment banks for charging high fees on IPOs by small businesses. The fees, as high as 15%, are much higher than the standard 1-3%. SEBI is also looking to curb coordinated activities between banks and investors to ensure fair practices in the booming IPO market.