(1) The trusteeship of a trustee shall come to an end—
(a) if the trustee ceases to be trustee under the Securities andExchange Board of India (Debenture Trustees) Regulations, 1993;or
(b) if the trustee is in the course of being wound up; or
(c) if unit holders holding at least three-fourths of the nominal valueof the unit capital of the 75 [collective investment scheme] pass a resolution for removing thetrustee and the Board approves such resolution; or
(d) if in the interest of the unit holders, the Board, for reasons to berecorded in writing decides to remove the trustee for any violation ofthe Act or these regulations committed by them; or
Provided that the trustee shall be afforded reasonableopportunity of hearing before action is taken under this clause;
(e) if the trustee serves on the Collective Investment ManagementCompany a notice of not less than three months expressing itsintention not to continue as trustee.
(2) On termination of the trusteeship under sub-regulation (1), anothertrustee, eligible to be appointed under regulation 18, shall be appointed bythe Collective Investment Management Company.
(3) The appointment of the new trustee under sub-regulation (2), shall becompleted within three months from the date the previous trusteeship cameto an end.
(4) The Board may notwithstanding anything contained in regulation 18appoint any person as a trustee if the Collective Investment ManagementCompany fails to appoint a trustee under subregulations (2) and (3).
(5) The trustee appointed under sub-regulations (3) and (4) shall standsubstituted as a trustee in all the documents to which the trustee so removedwas a party.
(6) The person appointed by the Board shall apply to the Court for an orderdirecting the Collective Investment Management Company to wind up the 76 [collective investment scheme].
(7) A trust deed in the form as specified under regulation 16 shall be executedby the Collective Investment Management Company in favour of the trusteeso appointed and from the date of such appointment, trustees shall be subjectto all the rights and duties as specified in the regulations.
(8) The trustee so removed shall from such date be discharged fromcomplying with the obligations under the trust deed but shall remain liable forany action taken by them before such removal.
Termination of the Agreement with the Collective InvestmentManagement Company 74 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
75ibid.
76ibid.