Comments
Market regulator SEBI’s proposal to bar ‘wilful defaulters’ from accessing capital markets to issue debt and most forms of equity is “credit-positive” for Indian banks, global rating agency Moody’s Investor Service has said.
This is because such a restriction would be an additional disincentive to borrowers’ from becoming wilful defaulters, Moody’s said in a note.
Public sector banks—who have high levels of impaired loans—would be the key beneficiaries of SEBI’s proposal, Moody’s has said.
The Securities and Exchange Board of India (SEBI) had on January 5 put out a discussion paper that proposes restrictions on borrowers who had deliberately not repaid loans despite adequate resources or who had engaged in fraudulent transactions such as siphoning off funds.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.