The Securities and Exchange Board of India proposes to bring out an interim report on delisting guidelines.

According to sources, the capital market regulator is yet to sort out issues involved in delisting. This is because the feedback to the earlier draft has been mixed.

While the regulator is in favour of shifting from reverse book building procedure to fixed price norm, there have been a strong case for continuing with the current procedures.

The agenda will be discussed at the board meeting tomorrow and thereafter interim guidelines will be issued after receiving comments from its advisory committees. The regulator has specified that it would require some more time to come out with final guidelines.

Another significant issue on delisting is the procedure for deciding on the option. As per the proposal, Sebi is of the view that companies opting for voluntary delisting may not be required to take permission through special resolution of the general body meeting. Rather, it could be done only through a board resolution.

The board will also consider another proposal to enact the guidelines for foreign investment in the stock exchanges into a regulation under the Sebi Act.

Sources added that while the norms have changed for the exchanges, it has to be realigned for depositories. In effect, the foreign investment norms need to be realigned with the Depositories Act. The Depositories Act specifies separate investment norms for institutional and individual entities.

Short selling in equity markets is another issue to debated by the board. The government has already said all institutions - foreign and domestic - may be allowed to short sell in the equity market.

However, the RBI is of the view that the facility should only be extended to domestic institutions to start with.