'Mens Rea' and the SEBI's New Mandate on Wilful Defaulters
By Team Legistify / 2016-06-17
Under the new SEBI standards, a 'wilful defaulter' has been characterized to mean any individual who is ordered as a 'wilful defaulter' by any bank or money related establishment or consortium thereof, as per the RBI rules on wilful defaulters including any individual whose chief, promoter or accomplice is arranged accordingly.

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A basic principle of criminal law is that a crime consists of both a mental and a physical state of affair. ‘Mens Rea’ being a mental element refers to a person's consciousness of the fact that his conduct is criminal, whilst the act of crime itself is the physical element.

Last month, the nation's capital business sector controller SEBI restricted 'wilful defaulters' from raising cash through an open issue of value shares, convertible and non-convertible obligation or semi obligation securities. New standards endorsed by SEBI likewise deny a wilful defaulter from securing control over a recorded organization or looking for enlistment as business sector middle person.

New Regulations

Under these new SEBI standards, a 'wilful defaulter' has been characterized to mean any individual who is ordered as a ' wilful defaulter' by any bank or money related establishment or consortium thereof, as per the RBI rules on wilful defaulters including any individual whose chief, promoter or accomplice is arranged accordingly. Throughout the last couple of years, the RBI has reinforced the meaning of willful defaulter to address the mounting misfortunes and expanding non-performing resources in the money related proclamations of planned business banks.

RBI Guidelines

Under the new SEBI standards, a 'wilful defaulter' has been characterized to mean any individual who is ordered as a 'wilful defaulter' by any bank or money related establishment or consortium thereof, as per the RBI rules on wilful defaulters including any individual whose chief, promoter or accomplice is arranged accordingly.

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