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SEBI ( The Security and Exchange Board of India) has today announced its decision to bar the loan defaulters from the market. From now on the willful loan defaulters will not be allowed to raise public funds through bonds and stocks. According to the new decision, the defaulters will also not be able to raise funds by taking board position at companies.
SEBI is further looking to bar the defaulters from setting up brokerage firms and mutual funds and from taking control from any company.
This movie from the Security and Exchange Board of India comes from the controversial issue over the chairman of the UB Group Vijay Mallya. Mallya currently has Rs. 9,000 crore due of loans as well as interest. He has exited the country while banks are still trying to recover their dues.
The chairman of the regulator, U K Sinha had a board meeting with Finance Minister Arun Jaitley and said that, “The new rules on restraining wilful defaulters would come into effect after they get notified.”
Sinha further added, “After the notification, all the persons would stand disqualified from all positions at listed companies.”
Mohith Agadi
