Regulation 3

(1) An insolvency professional shall be eligible to be appointed as a bankruptcy trustee for a bankruptcy process, if- (a) he, the insolvency professional entity of which he is a partner or a director, and all the partners and directors of the said insolvency professional entity are independent of the guarantor; (b) he is not subject to any ongoing disciplinary proceeding or a restraint order of the Board or of the insolvency professional agency of which he is a professional member; and (c) the insolvency professional entity of which he is a partner or a director, or any other partner or director of such insolvency professional entity does not represent any party in the bankruptcy process. Explanation. - For the purposes of this sub-regulation, a person shall be considered independent of the guarantor, if he- (a) is not an associate of the guarantor; 2 [and] (b) is not a related party of the corporate debtor 3 [.] 4 [***] 1 Omitted by Notification No. IBBI/2026-27/GN/REG150, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, stood as under:- “(g) “form” means a form appended to these regulations;”. 2 Inserted by Notification No. IBBI/2023-24/GN/REG108, dated 31st January 2024 (w.e.f. 31.01.2024). 3 Substituted by Notification No. IBBI/2023-24/GN/REG108, dated 31st January 2024 (w.e.f. 31.01.2024). Before substitution, it stood as “;and”. 4 Omitted by Notification No. IBBI/2023-24/GN/REG108, dated 31st January 2024 (w.e.f. 31.01.2024). Prior to omission, it stood as “(c) has not acted or is not acting as interim resolution professional, resolution professional or liquidator in respect of the corporate debtor.”.

(2) A bankruptcy trustee, who has been an auditor of the guarantor at any time during the preceding three years, shall make a disclosure of remuneration received, year-wise for such audit, to the committee. (3) An insolvency professional, other than who has filed an application under section 122 or 123 on behalf of a guarantor or a creditor, as the case may be, shall provide a written consent in 5 [such form as notified by the Board through circular] to the Adjudicating Authority before his appointment as bankruptcy trustee in a bankruptcy process.