Market regulator Sebi on Saturday deferred decision on mandatory grading for IPOs, while deciding to set up a committee on derivatives market and frame regulations for investment advisors.

However, the issue of allowing institutional investors to short sell securities, that is to trade in securities without owning them, was not taken up at the Sebi’s board meeting held here.

“The board decided to take a final call (mandatory) on grading of IPOs, after a credit rating agency makes its presentation to the Sebi’s board meeting,” SEBI Chairman M Damodaran told reporters after over an eight-hour meeting today.