Differentiate between Initial Public Offer (IPO) and Further Public Offer (FPO). Which entities are not entitled to make an Initial Public Offer (IPO).

Differentiation between Initial Public Offer (IPO) and Further Public Offer (FPO) A public issue of specified securities by an issuer can be either an Initial Public Offer (IPO) or a Further Public Offer (FPO). The key difference is: An IPO is done by an unlisted issuer to offer its shares to the public for the first time, thereby getting listed on a stock exchange. An FPO is done by an already listed issuer to offer its shares to the public, either to raise further capital or to dilute promoter holding. As per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the issuer shall comply with the conditions mentioned thereunder before making an IPO or FPO of specified securities. The conditions need to be satisfied both at the time of filing the draft offer document (commonly referred to as the Draft Red Herring Prospectus) and the time of filing the final offer document (commonly referred to as the Prospectus) with the Registrar of Companies. Entities not entitled to make an Initial Public Offer (IPO) Under Regulation 5(1) & (2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the following entities are not eligible to make an Initial Public Offer: If the issuer, any of its promoters, promoter group, directors, selling shareholders are debarred from accessing the capital market by the SEBI. If any of the promoters or directors of the issuer is a promoter or a director of any other company which is debarred from accessing the capital market. If the issuer or any of its promoters or directors is a willful defaulter or a fraudulent borrower. If any of the promoters or directors of the issuer is a fugitive economic offender. If there are any outstanding convertible securities or any other right which would entitle any person with any option to receive equity shares of the issuer. This requirement shall not apply to: outstanding options granted to employees, whether currently an employee or not, pursuant to an employee stock option scheme in compliance with the Companies Act, 2013, the relevant Guidance Note or accounting standards, if any, issued by the Institute of Chartered Accountants of India or pursuant to the Companies Act, 2013, in this regard; fully paid-up outstanding convertible securities which are required to be converted on or before the date of filing of the red herring prospectus (in case of book-built issues) or the prospectus (in case of fixed price issues), as the case may be.