The Reserve Bank Governor, at the February 3 policy meet, had said a final call on the move would have to wait for the market regulator's views on pricing as interest of non- lender shareholders also had to be taken into consideration.
"My feeling is that in our next board meeting we will be able to take up this proposal for approval," Sebi Chairman U K Sinha told reporters on the sidelines of a function at Patalganga near here. However, the Sebi chief did not specify when the next board meeting will take place.
On February 3, Governor Raghuram Rajan had said RBI was close to reaching an agreement with Sebi on valuation of companies undergoing debt restructuring.
He had noted that valuation was the key issue when a bank, allowed by the RBI to increase its stake in a company to up to 30 per cent, makes a move to exercise the same.
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"Sebi is interested in protecting the rights of the minority shareholders and the RBI is interested in making sure banks do not convert at too high a price and given a fair value. The discussion with Sebi is coming to some agreement."
It can be noted that in many companies like Suzlon, IVRCL, Kingfisher Airlines and Deccan Holdings, among others, banks hold stakes following their loan recast. If banks raise their stakes in IVRCL, they will be together holding close to 97 per cent in the Andhra Pradesh-based infra lender.
Sinha further said "the impression from banks and also from the RBI is that the Sebi's pricing formula at times works against the interests of bankers. So we are examining that. Our dialogue with the RBI is at a fairly advanced stage. We will be able to take it up at the next board meeting."