(1) A 122 [collective investment scheme] shall be wound up on the expiry of duration specified in the 123 [collective investment scheme] or on the accomplishment of the purpose of the 124 [collective investment scheme].
107 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
108ibid.
109ibid.
110ibid.
111ibid.
112ibid.
113ibid.
114ibid.
115ibid.
116ibid.
117ibid.
118ibid.
119ibid.
120ibid.
121ibid.
122ibid.
123ibid.
124ibid.
(2) Notwithstanding anything contained in sub-regulation (1), a 125 [collective investment scheme] mayalso be wound up—
(a) on the happening of any event which, in the opinion of thetrustee, requires the 126 [collective investment scheme] to be wound up and the prior approvalof the Board is obtained; or
(b) if unit holders of a 127 [collective investment scheme] holding at least three-fourth of thenominal value of the unit capital of the 128 [collective investment scheme] pass a resolutionthat the 129 [collective investment scheme] be wound up and the approval of the Board isobtained; or
(c) if in the opinion of the Board, the continuance of the 130 [collective investment scheme] isprejudicial to the interests of the unit holders; or
(d) if in the opinion of the Collective Investment ManagementCompany, the purpose of the 131 [collective investment scheme] cannot be accomplished andit obtains the approval of the trustees and also of the unit holders ofthe 132 [collective investment scheme] holding at least three-fourth of the nominal value of theunit capital of the 133 [collective investment scheme] with a resolution that the 134 [collective investment scheme] bewound up and the approval of the Board is obtained.
(3) Where a 135 [collective investment scheme] is to be wound up under sub-regulation (1) or subregulation(2), the trustee shall give notice disclosing the circumstancesleading to the winding up of the 136 [collective investment scheme] in a daily newspaper havingnationwide circulation and in the newspaper published in the language of the region where the Collective Investment Management Company is registered.
(4)(a) The trustee shall dispose of the assets of the 137 [collective investment scheme] concerned in thebest interest of the unit holders of that 138 [collective investment scheme].
(b) The proceeds of sale realised under clause (a), shall be first utilized towards the discharge of such liabilities as are due and payable under the 139 [collective investment scheme] and after making appropriate provision for meeting the expensesconnected with such winding up, the balance shall be paid to the unit holdersin proportion to their unit holding.
125 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014,w.e.f. 9-1-2014.
126ibid.
127ibid.
128ibid.
129ibid.
130ibid.
131ibid.
132ibid.
133ibid.
134ibid.
135ibid.
136ibid.
137ibid.
138ibid.
139ibid.
(5) On the completion of the winding up, the trustee shall forward to the Boardand the unit holders :
(a) a report on the steps taken for realisation of assets of the 140 [collective investment scheme], expenses for winding up and net assets available fordistribution to the unit holders, and
(b) a certificate from the auditors of the 141 [collective investment scheme] to the effect thatall the assets of the 142 [collective investment scheme] are realised and the details of thedistribution of the proceeds.
(6) The unclaimed money if any at the time of winding up shall be keptseparately in a bank account by the trustee for a period of three years for thepurpose of meeting investors‘ claims and thereafter shall be transferred toinvestor protection fund, as may be specified by the Board.
Effect of commencement of winding up proceedings
38. On and from the date of the publication of notice under sub-regulation (3)of regulation 37, the trustee or the Collective Investment ManagementCompany as the case may be, shall cease to carry on any business activitiesin respect of the 143 [collective investment scheme] so wound up.
Cessation of the 144 [collective investment scheme]
39. If, after the receipt of the report under sub-regulation (5) of regulation 37,the Board is satisfied that all the measures for winding up of the 145 [collective investment scheme] havebeen complied with, the 146 [collective investment scheme] shall cease to exist.
CHAPTER VI GENERAL OBLIGATIONS To maintain proper books of account and records, etc.