Wilful defaulter status expanded as a disqualifying criterion, applying to persons and their directors or promoters. The amendment inserts a definition of 'wilful defaulter' into regulation 2(1), covering persons categorized by banks, financial institutions or consortiums under RBI guidelines and including any person whose director, promoter or principal officer is so categorized. Schedule II is amended to add 'the director, the promoter' after 'principal officer' and to include absence of categorization as a wilful defaulter as an express criterion.