(1) The agreement referred to in regulation 20 entered into by the trusteewith the Collective Investment Management Company may be terminated—
(a) if the Collective Investment Management Company is in thecourse of being wound up as per the provisions of the CompaniesAct, 1956; or
(b) if unit holders holding at least three-fourths of the nominal valueof the unit capital of the 77 [collective investment scheme] pass a resolution for terminatingthe agreement with the Collective Investment ManagementCompany and the prior approval of the Board has been obtained; or
(c) if in the interest of the unit holders the Board or the trustee,after obtaining prior approval of the Board, and after giving anopportunity of being heard to the Collective InvestmentManagement Company, decide to terminate the agreement with theCollective Investment Management Company.
(2) Upon termination of agreement under sub-regulation (1), anotherCollective Investment Management Company, registered with the Board,shall be appointed by the trustee within three months from the date of suchtermination.
(3) The Collective Investment Management Company so removed shallcontinue to act as such at the discretion of trustee or the trustee itself may actas Collective Investment Management Company till such time as newCollective Investment Management Company is appointed.
(4) The Collective Investment Management Company appointed under subregulation(2) shall stand substituted as a party in all the documents to whichthe Collective Investment Management Company so removed was a party.
(5) The Collective Investment Management Company so removed shallcontinue to be liable for all acts of omission and commissions notwithstandingsuch termination.
(6) If, none of the Collective Investment Management Company, registeredunder these regulations, consent to be appointed as Collective InvestmentManagement Company within a further period of three months, then thetrustee may wind up the 78 [collective investment scheme].
(7) An agreement for managing 79 [collective investment scheme] property shall be executed in favourof the new Collective Investment Management Company subject to all therights and duties as specified in the regulations.
CHAPTER V 77 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
78ibid.
79ibid.
80 [COLLECTIVE INVESTMENT SCHEME]S OF COLLECTIVE INVESTMENT MANAGEMENT COMPANY Procedure for launching of 81 [collective investment scheme]s