New Delhi, Mar 12 (ANI): The Securities and Exchange Board of India (SEBI) today decided to bar the wilful loan defaulters from raising public funds through stocks and bonds as also from taking board positions at listed companies.
Market regulator, Sebi has also decided to bar such defaulters from setting up market intermediaries such as mutual funds and brokerage firms. These defaulters are also barred to take any control of any other listed company.
The move taken by Sebi comes after a raging controversy over UB Group Chairman Vijay Mallya, who has exited the country amid continuing efforts by the banks to recover dues totalling over Rs. 9,000 crore of unpaid loans and interest.
Addressing the media after an important board meeting by Finance Minister Arun Jaitley, the regulator’s Chairman U K Sinha said, “The new rules on restraining wilful defaulters would come into effect after they get notified.”
“After the notification, all the persons would stand disqualified from all positions at listed companies,” added Sinha. (ANI)