The norms are revised and updated periodically, but sources said that a revision is expected, at least in a couple of months. The current norms cover a wide range of topics right from the role of the merchant bankers and underwriters of a public issue to post-issue monitoring. However, if a company decides to mobilise public money and vanishes, there is nothing that Sebi can do about it, or at least has done about in the case of the 142 companies which have been classified as `vanishing'.

The guidelines are also expected to fix some responsibility on the merchant bankers concerned. Incidentally, Sebi has also requested more powers to proceed against companies which default on their commitments to investors. Sebi is learnt to be focussing on the protection aspect of guidelines. At present, if a company or trust collects money from the public and then finds itself unable to pay up, there seems to be no way that an investor can ever get the money back unless the company decides to pay up.

The revision in guidelines will focus on bringing down the risk of such an eventuality recurring, sources said.

Concurrent with tightening the DIP norms, Sebi, as has already been reported, is also considering an upgradation in the due diligence exercise conducted by merchant bankers in an effort to ensure quality issues. In order to deal with the vanishing companies which belong to various states, task forces have been set up at the state levels, monitored by a central co-ordination committee, which has the secretary of the Department of Company Affairs and the Sebi chief as its co-chairmen.