"The rating regulations finalised by SEBI will be brought into force in three or four days, once the norms are in print," Mehta told newsmen here on Thursday.

SEBI would also bring in regulations on collective investment schemes soon and "is planning to bring all the regulations on its agenda now into force by December 1999," he said.

The new rating regulations ban rating agencies from rating instruments to be floated by their promoters and extends the rule to the borrowers from the promoter institution(s), he said adding, however, it can be relaxed in the latter case only if the institution builds a `China wall' separating itselt from the functions of the rating agency.

The `China wall' implies that the promoter institution should not have its representatives on the board or the decision-making committees of the rating agency or in the crucial officialposition, he said.

Despite arguments to the contrary, SEBI had taken a decision to bring in regulations on rating agencies as they are a must to instil confidence of investors on the rating mechanism as part of capital market regulations, he added.

Unlike in the past when minimum limit was prescribed for consideration as a promoter of rating agency, a promoter with the smallest holding would be considered to be a promoter under the new norms, Mehta said.

About Herbertsons issue, he said the SEBI would not take any decision before the Mumbai high court judgement is in place, he said adding that the SEBI cannot take a decision on an issue which is subjudice.

Even the parties to the issue, Vijay Mallya and Kishore Chhabria, who were at loggerheads for acquiring controlling stake in the compnay, have asked SEBI to keep their case in abyance till it was settled by the high court, he said.

To a query, he said issue pertaining to the proposed charging of fee by National Securities Depository Limited onshares to be transferred to the upcoming Central Depository Services Limited would be sorted out soon.

SEBI would be meeting soon to decide on whether such a charge was necessary and if so at what rate, he added.

Investor confidence is the bedrock of the capital market operations and all the systems of SEBI were investor-centric and not to help any company or intermediary, he said.

SEBI regulations aiming to bring investor confidence such as dematerialisation of shares, setting volatility margins and total computerisation of trading have paid off, he said adding they have also imparted transparency in market operations.

Thus, Indian capital market was comparable to the best in the world, he added.