"The takeover code is silent on this issue. It does not specifically say that a negotiated deal at a higher price after the lapsing of the deadline for revision of offer can't take place. It is also silent on whether this higher price can be offered to all shareholders or not. We have therefore decided to look into the matter following complaints received from investors", said SEBI chairman, DR Mehta.

Mehta also defended the last minute instructions to Sterlite on complying with the preferential issue guidelines, on the grounds that as this was a new product which was being offered by Sterlite, the regulator needed to seek a legal view.

"We conveyed our views to the company the earliest we could", said Mehta. The takeover code is not specific on this point at all and hence there is a glaring anomalywhich allows a company to revise its offer at the last minute by entering into a negotiated deal.

The SEBI move, comes in the wake of complaints filed by some investors, who claim to have lost out on an opportunity to sell their shares to Alcan at a higher price, as the revision of the price was done on the last day. As regards,Templeton's complaint to SEBI, Mehta said that the complaint pertained to refusal by Karvy, the share registrar for the offer to accept the shares from Templeton's custodian, Hongkong Bank, on the grounds that the shares had come in after 4.00 pm, the deadline for receipt of shares.

"While Sterlite had agreed to accept the shares the registrar said no. Templeton, however, claims that they lodged the shares on time. We are looking into the complaint", said Mehta. Legal experts had earlier told The Financial Express that certain provisions of the takeover code when looked at in harmony indicate that a revision in the offer price after the last day for revision, should not beallowed.

If it is, then the entire rationale of the last day for revision of the offer, which is seven days prior to the close of the offer, would stand defeated.