Sebi ban on wilful defaulters may hit PE, VC- backed players
According to the SEBI notification on wilful defaulters, the issuer cannot make a public issue of shares, debt securities or non-convertible redeemable preference shares if the company or its promoters or directors figure on the list of wilful defaulters. Any company or its promoters and directors categorised as wilful defaulters are not allowed to take control over other listed companies. The Independent Directors are also being issued notices to include them as willful defaulters. This is completely negative and incorrect approach.