Capital market regulator Sebi is likely to finalise the listing requirements for small and medium enterprises (SMEs) at its board meeting on Monday. The board is also expected to decide on the launch of an SME stock exchange to list these companies.

The regulator is also expected to discuss the contents of a legal report, prepared by an independent counsel, with regard to an order passed by a Sebi panel against the National Securities Depository (NSDL) in the initial public offering (IPO) scam.

The panel, comprising National Judicial Academy director, G Mohan Gopal and former RBI nominee on the Sebi board V Leeladhar, was appointed to oversee the proceedings against NSDL.

The panel was set up to avoid a possible conflict of interest, as current Sebi chairman CB Bhave was heading NSDL then. The orders issued by the panel on December 4, 2008 is yet to be released.

A Sebi probe in 2006 revealed that a few investors cornered a larger portion of the shares that were reserved for retail investors. The market regulator had pulled up NSDL alleging lack of enough scrutiny while enforcing the know your client (KYC) norms.

In November 2006, Sebi directed NSDL to pay up Rs 45 crore as penalty for not cross-checking client details. NSDL approached the Securities Appellate Tribunal against this order, which set aside the Sebi orders.