SEBI provides informal guidance on matters pertaining to the SEBI Act, Rules, Guidelines and Regulations. The guidance is provided on an application made by an intermediary, a listed company, a company proposing to get listed, a mutual fund or an acquirer of shares under the Takeover Regulations. The fee for the same is Rs. 25,000.

SEBI provides guidance in the form of No-Action Letters, which indicate that if the proposed action is done in the manner laid down in the application, then no action would be taken by SEBI or Interpretative Letters, wherein SEBI provides interpretation on any legal provision in connection with the proposed transaction.

SEBI may or may not grant a personal hearing and would dispose of the case within 60 days. It does not respond to applications which:

1. are general in nature and do not describe the facts clearly

2. are hypothetical in nature

3. do not cite the applicable legal provisions

4. are similar to a guidance issued by the SEBI on a substantially similar question involving substantially similar facts

5. pertains to a case where investigation, enquiry or any action is already launched

6. involve issues pending before any Tribunal or Court and are sub judice.

7. cases where investigation, enquiry or other enforcement action has already been initiated.

8. where the policy concerns require department to not to respond

It is important to note the guidance is not binding on the SEBI, although it may generally act in accordance with the same. It is not an appealable order of SEBI.