Friday, August 1, 2014

#RBI willful defaulters of bank loans to be barred from capital markets

According to news reports Reserve Bank of India (RBI) has forwarded a proposal to the Securities and Exchange Board of India (Sebi) suggesting barring willful defaulters of bank loans from raising funds through capital markets.
Sebi will hold discussions on the issue and a final decision will be taken after taking into account the provisions in various sets of existing regulations and views of all stakeholders, the report suggests.
Currently, information about willful defaulters of bank loans are shared with Sebi and others, including credit information agencies like Credit Information Bureau Limited (Cibil), on a quarterly basis.
To prevent defaulters from accessing other funds, RBI also wants Cibil and other credit information agencies to get names and other details of such entities as soon as they are declared as ' willful defaulter' by any of the banks.