Wilful defaulter
Q. Who is a willful defaulter?- Published on 15 Mar 16a. One who has not paid taxes
b. One who is not paying the bank debt back
c. One who can pay the debt but is still defaulting on payment
d. None of the above
ANSWER: One who can pay the debt but is still defaulting on payment
- It is an entity that can is defaulting on its payment even if it an pay back the debt.
- In an attempt to tighten the regulatory framework, the Securities and Exchange Board of India (SEBI) has barred ‘wilful defaulters’ from accessing the capital market or acquiring another listed entity.
- The capital and commodity market regulator has decided that if a listed entity or its promoter has been declared a wilful defaulter, it will not be allowed to make a public issue of equity shares, debt or any other convertible securities.
- The guidelines for determining ‘fit and proper person’ will also be amended to keep such wilful defaulters out of its ambit.
- Any company or its promoter or director categorised as willful defaulter may not be allowed to take control of other listed entity. However, if a listed company or its promoter or its director is categorised as willful defaulter, and there is a take-over offer in respect of the listed company, they may be allowed to make a competing offer.
