A company "issuer" was in the process of making an offer to Right Issue of the specified securities. All the process was completed and the arrangement was complete. Ms. Madhu, a director of the company was categoized as

As per regulation 70(6) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, an issuer shall make disclosures in the draft letter of offer, letter of offer and abridged letter of offer, if the issuer or any of its promoters or directors is a wilful defaulter. There is no disqualification provided for wilful defaulter is case of Right issue. Therefore, the company can proceed to offer the securities through Right Issue. According to Regulation 5 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, an issuer shall not be eligible to make an initial public offer, if the issuer or any of its promoters or directors is a wilful defaulter. According to Regulation 102 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, an issuer shall not be eligible to make a further public offer, if the issuer or any of its promoters or directors is a wilful defaulter. Therefore, in case of Public Issue, the company cannot proceed to offer the securities.