TERMINATION OF THE AGREEMENT WITH THE COLLECTIVE INVESTMENT MANAGEMENT COMPANY :

The agreement entered into by the trustee with the Collective Investment Management Company may be terminated –

(a) if the CIMC is in the course of being wound up as per the provisions of the Companies Act, 2013 or;

(b) if unit holders holding at least three-fourth of the nominal value of the unit capital of the scheme pass a resolution for terminating the agreement with the CIMC and the prior approval of SEBI has been obtained, or

(c) if in the interest of the unit holders, SEBI or the trustee after obtaining prior approval of SEBI, and after giving an opportunity of being heard to the Collective Investment Management Company, decide to terminate the agreement with the CIMC.

Another CIMC registered with SEBI, should be appointed upon the termination of agreement by the trustee within three months from the date of such termination. The CIMC so removed continues to act as such at the discretion of trustee or the trustee itself may act as CIMC till such time as new CIMC is appointed. The CIMC appointed should stand substituted as a party in all the documents to which the CIMC so removed was a party. The CIMC so removed should continue to be liable for all acts of omission and commissions notwithstanding  such termination. If, none of the CIMC, registered under the regulations, consent to be appointed as CIMC within a further period of three months, then the trustee may wind up the scheme. An agreement for managing scheme property should be executed in favour of the new CIMC subject to all the rights and duties as specified in the regulations