Meanwhile, investors who have dematerialised their shares with the Central Depository Services Ltd (CDSL) are turning restless, having failed to trade in these shares in the absence of connectivity between the two depositories. Sources said that some of them have even informally informed Sebi of their displeasure over the lack of connectivity, with some even looking at the legal option.

Sebi had allowed CDSL to commence operations before connectivity with the National Securities Depository Ltd (NSDL) was in place. Hence, even though some investors did dematerialise their shares with CDSL, they cannot trade in them even three months after CDSL was given the certificate of commencement.

Till recently, the delay was being attributed to delay in a nod from theDepartment of Telecommunications (DoT) to connect the two networks. This nod has also come in the form of an I-Net connectivity accorded by DoT, but the trouble now is to build an interface between the two networks.

"Both the networks are starkly different. It is not possible for either side to change their systems now as these have been developed with a lot of effort, each having its own strengths. An interface between the two needs to be developed and both the depositories are working to see how the software for the same can be developed quickly. But this is a technology issue and could take anything over even a month," said a market source.

Sebi sources also confirmed that some investors in CDSL had expressed apprehension over the delay in connectivity. The trouble for Sebi now is that it is no longer a regulatory issue but a technology one, something which appears not to have been factored in earlier.

CDSL on its part is raring to go, but can do so only once it has connectivity with the otherdepository, stock exchanges and companies in place.

Repeated attempts to get a response on the connectivity issue from CDSL managing director PV Maiyya proved futile. Bombay Stock Exchange (BSE) president and CDSL director Anand Rathi too was not available for comment.

Rathi had, however, in a recent conversation with The Financial Express expressed regret on the delayin connectivity between the two depositories even three months after receiving the Sebi nod for commencement of operations.

Sebi chairman DR Mehta, when contacted, said that he was hopeful that the issue of connectivity would be sorted out in a fortnight or so. The two depositories are working on the issue," he said.