Income Tax - GS questions based on daily current affairs

ANSWER: One who can pay the debt but is still defaulting on payment

Explanation:

• 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.