India's Securities and Exchange Board (SEBI) is investigating six domestic investment banks over their handling of initial public offerings (IPOs) by small businesses. SEBI has found that some banks charged companies fees equivalent to 15% of funds raised via their IPOs, significantly higher than the typical 1-3%. The regulator suspects that inflated bids may have been canceled before allotment to boost subscriptions, raising concerns of manipulated oversubscription. Additionally, the Indian stock exchange operator BSE has instructed bankers to increase their oversight of IPO applications from small companies.