RBI wants Sebi to bar wilful defaulters from capital markets

The Reserve Bank of India (RBI) has forwarded a proposal to the Securities and Exchange Board of India (Sebi) suggesting barring wilful defaulters of bank loans from raising funds through capital markets.

The central bank is exploring ways to share details of these defaulters with Sebi on a real-time basis, a senior official confirmed.

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.

Currently, information about wilful 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 ' wilful defaulter' by any of the banks.