Capital market regulator, SEBI has notified amended norms barring wilful defaulters from making a public issue of shares, debt securities, or non-convertible redeemable preference shares. But wilful defaulters can be allowed to tap existing shareholders by way of rights issue, private placement, or preferential allotment. SEBI has also restrained wilful defaulters from setting up market intermediaries like mutual funds and brokerage firms. Also, a company or its promoters and directors categorised as wilful defaulters are barred from taking control of any other listed company. The new rules, effective from yesterday, apply to entities declared wilful defaulter as per RBI norms. An individual or a company is declared a 'wilful defaulter' for deliberate non-payment of dues despite adequate cash flow and good net worth, and for siphoning off funds to the detriment of the defaulting unit.