ELIGIBILITY FOR APPOINTMENT AS TRUSTEE :
The persons registered with SEBI as Debenture Trustee under SEBI (Debenture Trustee) Regulations, 1993 are only eligible to be appointed as trustees of collective investment schemes. However, no person is eligible to be appointed as trustee, if he is directly or indirectly associated with the persons who have control over the CIMC. The CIMC shall furnish to SEBI particulars in respect of trustees appointed in the prescribed form.
No person should be appointed as trustee of a scheme, if he has been found guilty of an offence under the securities laws or SEBI or any authority to which SEBI has delegated its power has passed against such person, an order under the Act for violation of any provision of the Act or of regulations made hereunder.
The trustee and the Collective Investment Management Company should enter into an agreement for managing the schemes’ property. The agreement for managing the scheme property should contain clauses as specified and such other clauses as are necessary for the purpose of fulfilling the objectives of the scheme.