Define and discuss the conditions for Preferential Issue. When an issuer becomes ineligible to make a such issue?

A listed issuer may make a preferential issue of specified securities, if: all equity shares allotted by way of preferential issue shall be made fully paid up at the time of the allotment; a special resolution has been passed by its shareholders; all the equity shares, if any, held by the proposed allottees in the issuer are in dematerialised form; the issuer is in compliance with the conditions for continuous listing of equity shares as specified in the listing agreement with the recognised stock exchange where the equity shares of the issuer are listed, SEBI Listing Regulations, 2015 as amended, and any circular or notifications issued by SEBI thereunder; the issuer has obtained the Permanent Account Number of the proposed allottees. When an issuer becomes ineligible to make a such issue: Preferential issue of specified securities shall not be made to any person who has sold or transferred any equity shares of the issuer during the six months preceding the relevant date. An issuer shall not be eligible to make a preferential issue if any of its promoters or directors is a fugitive economic offender. Where any person belonging to promoter(s) or the promoter group has previously subscribed to warrants of an issuer but failed to exercise the warrants, the promoter(s) and promoter group shall be ineligible for issue of specified securities of such issuer on preferential basis for a period of one year from: the date of expiry of the tenure of the warrants due to non-exercise of the option to convert; or the date of cancellation of the warrants, as the case may be.