New Delhi, May 26
Wilful defaulters will no longer be able to tap the securities markets to raise funds and hold Board positions at listed companies with SEBI notifying the amended norms in this regard.
While putting in place a stringent framework to choke the funding sources for wilful defaulters, SEBI has also restrained such entities from setting up market intermediaries like mutual funds and brokerage firms.
The new rules, which has become effective from yesterday, would apply to every individual and company declared as wilful defaulter as per the RBI norms.
The issuer cannot make a public issue of shares, debt securities or non-convertible redeemable preference shares if the company or its promoters or directors figure on the list of wilful defaulters, SEBI said.
Besides, any company or its promoters and directors categorised as wilful defaulters are not allowed to take control over other listed company.
However, if a listed company or its promoters or directors is categorised as wilful defaulter, and there is a takeover offer in respect of that listed company, they may be allowed to make competing offer. — PTI