Securities and Exchange Board of India Chairman C B Bhave on Tuesday said the regulator is looking at the possibility of reducing the timeframe for issuance of the rights issue.

"We are hoping that we can bring it down further but we need to increase the processes also," Bhave told reporters in Chennai.

Referring to a query that the rights issue can be set through demat process, he said, they were examining the suggestion.

"Our hope is that in the next few months, we will complete our examination of this issue, maybe put it on our website to get people's comments and then we would take a decision," he said.

On whether banks have accepted Sebi's system of issuing the allotted shares to the investors account, he said five banks, including some leading private and public sector lenders have accepted the terms.

Corporation Bank [Get Quote], State Bank of India [Get Quote], HDFC Bank [Get Quote], ICICI [Get Quote] and Union Bank of India [Get Quote] had accepted the terms and five more banks have applied, he said.

To another query whether this system would be made mandatory, he said it was too early to comment. "We have to see whether people like it or not", he said.

On the introduction of currency derivatives, he said introduction of borrowing facility is scheduled in April.

He said Sebi had allowed institutions to have direct market Access and asked them to also pay margins like retail investors pay margin on a 'D plus One' basis.