CB Bhave, Chairman, Sebi, said the system could be made operational by the first week of July. “We expect to make it operational on an optional basis, probably from a few branches that the respective banks identify.”

Excerpts from CNBC-TV18’s exclusive interview with CB Bhave:

Q: It is an in-principal approval, when does it actually become operational? In terms of the rest of the system being geared towards this move, do you believe that the banking system will be ready to approve this in-principal approval as in the next few weeks?

A: This is an in-principal approval and the first step. We have had a few rounds of discussions with banks, merchant bankers, stock exchanges, and all concerned players. We have a fair bit of confidence that the system can be made operational by the first week of July. We expect to make it operational on an optional basis probably from a few branches that the respective banks identify. Then, depending on how this system settles down, we will take further steps.

Q: Any sort of tentative timeline or how long do you expect all of this to take place?

A: We expect to make a beginning by the first week of July and then expect the system to take it on as we see progress.

Q: There has been considerable speculation on further primary market reforms. Is there any thing you can share with us considering the board meeting that took place today?

A: This is part of our effort to reduce the time between the public issue and listing as well as to make sure that investors don’t face difficulties in this entire process. Hence, the board has decided that we first focus on the refund process which is the outcome of today’s meeting. Simultaneously, we would be working on the issue of why does it take 21 days. As and when we are ready with the concepts on that, we would come out and share it with all stakeholders.