Eligibility for non-convertible securities: debarred, wilful-defaulter or fugitive-status issuers prohibited from public issues unless exceptions apply Regulation 5 bars issuers from issuing non-convertible securities if, on the date of filing the draft offer document or offer document, the issuer or its promoters or directors are debarred from market access, are wilful defaulters, are fugitive economic offenders, or have pending fines by the Board or stock exchanges. The prohibition extends where promoters or directors are similarly disqualified in another company. Exceptions include nominee directors appointed by debenture trustees, expiry of debarment periods before filing, and non-application of wilful-defaulter bars to private placements.