NEW DELHI: In a multi-pronged clampdown on ‘wilful loan defaulters’, markets regulator Sebi today barred them from raising public funds, as also from taking control of listed firms and holding board positions — a move that would disqualify beleaguered Vijay Mallya from various posts.
Besides, such defaulters — including individuals and the companies as well as their promoters and directors — would be debarred from setting up or being associated with the market entities like mutual funds and brokerage firms.
Sebi is also mulling making it mandatory for listed companies to disclose their bad loans if they breach certain thresholds set by the banking sector regulator RBI.
After an all-important meeting of its board, which was also addressed by Finance Minister Arun Jaitley, Sebi Chairman U K Sinha also announced measures to enhance surveillance actions in the marketplace and to check financial frauds, including by making it mandatory for listed firms to disclose impact of lapses flagged by the auditors. (AGENCIES)
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