RBI had earlier voiced its reservations about ‘credit enhancement’ mechanisms like ‘letter of comfort’ and ‘letter of undertaking’ given by promoters or parent firm to the borrowing entity as well as supports like pledge of shares. Corporates lower their cost of debt, often significantly, through these structures.
Sebi bars Vijay Mallya from accessing securities market for 3 years
According to the order, Mallya is prohibited from buying, selling, or dealing in securities directly or indirectly, and from being associated with the securities market