Eligibility restrictions for IPOs bars issuers with debarred persons, wilful defaulters, fugitive economic offenders, or outstanding convertible rights. Issuers are ineligible to make an initial public offer if the issuer, its promoters, promoter group, directors or selling shareholders are debarred, if promoters or directors are associated with debarred entities, if the issuer or its promoters or directors are wilful defaulters or fraudulent borrowers, or if any promoter or director is a fugitive economic offender. An issuer is also ineligible where outstanding convertible securities or rights would permit receipt of equity shares, subject to exemptions for compliant employee stock options, stock appreciation rights fully exercised and disclosed before filing, and fully paid convertible securities required to convert on or before filing.