The Securities and Exchange Board of India has modified rules barring wilful defaulters from raising public funds from the market and holding positions in the board of directors in listed companies, reported The Indian Express. According to the new rules made public on Thursday, the market regulator has said that such entities cannot set up market intermediaries like mutual funds and brokerage firms, nor can it take control of any other listed company. The new rules came into effect from May 25.

In March, the regulator had given its go-ahead for the proposal that sought barring of wilful defaulters from raising money from the public in the capital markets. The proposal also suggested that companies that have repeatedly failed to repay loans should not be allowed to issue debt to the public.

SEBI has also made changes in rules for Issue of Capital and Disclosure Requirements, Issue and Listing of Debt Securities, Substantial Acquisition of Shares and Takeovers and Issue and Listing of Non-convertible Redeemable Preference Shares, reported The Times of India.