Zubin has been declared by a private bank PB Ltd, as a willful defaulter under SEBI (Substantial Acquisition of shares and Takeovers) Regulations, 2011. But, he is interested to acquire shares of XYZ Ltd. Explain the mea

Meaning of Willful Defaulter Willful defaulter means any person who is categorized as a wilful defaulter by any bank or financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India and includes any person whose director, promoter or partner is categorized as such. Options available with Zubin to acquire shares of XYZ Ltd As per Regulation 6A of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, no person who is a wilful defaulter shall make a public announcement of an open offer for acquiring shares or enter into any transaction that would attract the obligation to make a public announcement of an open offer for acquiring shares under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Hence, Zubin cannot make an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. However, this regulation shall not prohibit the wilful defaulter from making a competing offer in accordance with Regulation 20 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 upon any other person making an open offer for acquiring shares of the target company. Therefore, the route available with Zubin, who is declared a wilful defaulter, is to make a competing offer if the threshold of 25% or more in terms of Regulation 3 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 is triggered by another person making an open offer.