SEBI has issued Master Direction on Treatment of Wilful Defaulters and Large Defaulters. This Master Direction on wilful defaulters serves as a comprehensive guideline delineating the regulatory framework and procedures for classification of borrowers as wilful defaulters.
This directive plays a crucial role in maintaining the integrity of the financial system by outlining the measures and consequences for those borrowers who deliberately default on their financial obligations. The Master Direction was released for comments from stakeholders and members of the public in September 2023.
