Speaking to The Financial Express on the eve of the meeting, a top institution official said though the FIs would attend themeeting with an open mind, there was little sense in forcing FIs to come under the code and, say, get them to make open offers in companies.

"This is not done anywhere. Besides, there has to be a distinction made between FIs and acquirers. While acquirers are buying the shares, FIs are normally on the other side as sellers in an open offer situation," the official said.

Besides, FIs feel that they do not intend to control managements, and, therefore, there is no sense in treating them as parties in control of companies. Sebi is examining bringing them under the code since of late FIs have been showing a marked activist stance, particularly manifest in recent cases like the BSES open offer by Reliance where they had resisted Reliance representation on the board, and even in an earlier case when they blocked a Tata plan to hike stake in ACC through the preferential route.

The Sebi view is that if the FIs function as those in control, the market should know that as a fact and take an informed decision on the company.

"There is then no point treating institutions differently, and keeping them outside the purview of the takeover code," a Sebi source said.

Sebi wants to meet the FIs to know their mind on these issues and examine in detail their role in company managements, particularly in cases where takeover cases arise.