No one expected the recent U-turn in stock prices -- no banker, no promoter and not even market regulator Sebi. Little wonder then that the pricing formula prescribed by the market regulator to facilitate equity issues to institutional investors suddenly looks outdated, acting more as an obstacle rather than an enabler, the report said.

Less than a year ago, Sebi revised the QIP pricing norms changing the formula to the average price of two weeks preceding the issue as against the earlier formula of using the higher of the average of six months or 15 days as the base price. It was a move then seen as an attempt to help companies access funds in a bear market.

Today, this same enabler threatens to derail the QIP plans of several hopefuls like GMR Infrastructure, HDIL and Puravankara, as prospective investors find the valuations based on the Sebi pricing formula unattractive, the report added.

Well, CB Bhave has a tough call to take. Should he revise the formula again or allow issuers to use the six-month or two-week option? His decision could spell access or denial of funds to several corporate, it said.

Prospective issuers would be hoping the market regulator will offer them a way out of their predicament, but Sebi may not want to rush into another revision of norms so soon.

Meanwhile, the only hope for prospective issuers will be a window it may open for some issues to pull through after its board meets on June 18, the report concluded.