Coming out with strict steps to protect investor interest, the SEBI on Saturday decided to bar wilful defaulters from raising public money as well as holding board positions, besides making it must fo
Coming out with strict steps to protect investor interest, the SEBI on Saturday decided to bar wilful defaulters from raising public money as well as holding board positions, besides making it must for listed firms to disclose impact of audit qualifications in a separate document. To curb malpractices in the securities and commodities markets, the watchdog will boost surveillance mechanism and enhance the supervision of brokers and other intermediaries.
Cracking its whip on “wilful loan defaulters”, SEBI has decided to ban them from raising public funds through stocks and bonds as also from taking board positions at listed companies, a move that would disqualify the beleaguered Vijay Mallya from various posts. Addressing the board, finance minister Arun Jaitley asked the regulator to be alert on market supervision and take measures to expand investor base and deepen the commodity derivatives segment.
In addition, such defaulters will not be allowed to set up market intermediaries such as mutual funds and brokerage firms and will be restrained from taking control of any other listed company. “If somebody is proved by RBI or orders that he is a wilful defaulter, then it is very risky to allow that person, or company to raise money from retail persons in the market,” SEBI chairman U.K. Sinha was quoted as saying by news agencies. “They will not be allowed to raise money from the market. They will also be debarred from taking any position in a listed company. Such persons will also be declared not fit and proper under various intermediary regulations,” he added. Meanwhile, Sebi has also given its in-principle approval for the listing of BSE.
