Regulation 7

⁴ Substituted by Notification No. IBBI/2026-27/GN/REG147, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as, “Form P1”. which he is a partner or director, are independent of the corporate debtor. Explanation.- A person shall be considered independent of the corporate debtor, if he- (a) is eligible to be appointed as an independent director on the board of the corporate debtor under section 149 of the Companies Act, 2013 (18 of 2013), where the corporate debtor is a company; (b) is not a related party of the corporate debtor; or (c) is not an employee or proprietor or a partner- (i) of a firm of auditors or secretarial auditors or cost auditors of the corporate debtor; or (ii) of a legal or a consulting firm, that has or had any transaction with the corporate debtor amounting to five per cent. or more of the gross turnover of such firm, in any of the preceding three financial years. (2) A resolution professional, who is a director or a partner of an insolvency professional entity, shall be ineligible to continue as a resolution professional in a process, if the insolvency professional entity or any partner or director of such insolvency professional entity represents any of the stakeholders in the same process.