The regulator on Tuesday decided to convene a meeting of the committee on depositories headed by executive director Pratip Kar on April 24. Sources said that expansion of the list would be taken up in right earnest and it is possible that the list would be expanded.

Sebi chairman DR Mehta had earlier told The Financial Express that the list would be expanded only a few weeks after the April 6 deadline comes into force.

Sources, however, said that there has been a growing demand from the market particularly from FIIs, that the list be expanded in line with an increase in the interest in the demat segment at both the NSE and BSE.

"We are committed to the growth of the depository. The April 24 meeting will discuss how the list can be expanded and which arethe securities that can be included. "We have to ensure that there are no liquidity problems in these securities," said Mehta when contacted on Tuesday.

It is learnt that the committee which comprises representatives of NSE, BSE, SHCIL and some foreign custodians and brokerages, will take a decision to expand the list on April 24. "It is possible that the list will be expanded on that day itself," said a source.

Bhave had recently told The Financial Express that the list for compulsory demat trading for institutions should be immediately expanded by Sebi as the amount of dematerialisation in the existing eight securities had virtually reached the upper limit.

According to him, registrars and the market were ready for the expansion of the list and hence it should not be delayed any further. Mehta, however, was of the opinion that the list should not be expanded till the regulator had monitored for a few weeks the enforcement of the April 6 deadline, from which date demat shares would be allowed to bedelivered in the physical segment as well.

The move has in fact already boosted the confidence of investors with the volumes in the segment zooming on Tuesday to a record Rs 56 crore.