(1) Only persons registered with the Board as Debenture Trustee underSecurities and Exchange Board of India (Debenture Trustee) Regulations,1993 shall be eligible to be appointed as trustees of collective investmentscheme.
Provided that no person shall be eligible to be appointed as trustee, if he isdirectly or indirectly associated with the persons who have control over thecollective investment management company.
(2) The Collective Investment Management Company shall furnish to theBoard particulars as specified in Form C in respect of trustees appointedunder sub-regulation (1).
Appointment of trustee not found guilty
19. No person shall be appointed as trustee of a 38 [collective investment scheme] if—
(a) he has been found guilty of an offence under the securitieslaws, or
(b) the Board or any authority to which the Board has delegated itspower has passed against such person, an order under the Act forviolation of any provision of the Act or of regulations madehereunder.
Agreement with collective investment management company