Once a Collective Investment Scheme (CIS) is launched, it can also be wind-up upon happing of certain events. State these events and duties of trustee in this regard.

In accordance with the regulation 37 of the SEBI (Collective Investment Schemes) Regulations, 1999, a scheme shall be wound up upon expiry of duration specified in the collective investment scheme or on the accomplishment of the objective of the collective investment scheme as specified in the offer document. A collective investment scheme may also be wound up: on the happening of any event which, in the opinion of the trustee, requires the collective investment scheme to be wound up and the prior approval of the SEBI is obtained; or if unit holders of a collective investment scheme holding at least three-fourth of the nominal value of the unit capital of the collective investment scheme, pass a resolution that the collective investment scheme be wound up and the approval of SEBI is obtained thereto; or if in the opinion of SEBI, the continuance of the collective investment scheme is prejudicial to the interests of the unit-holders; or if in the opinion of the Collective Investment Management Company, the purpose of the collective investment scheme cannot be accomplished and it obtains the approval of the trustees and also of the unit holders of the collective investment scheme holding at least three-fourth of the nominal value of the unit capital of the collective investment scheme with a resolution that the collective investment scheme be wound up and the approval of SEBI is obtained thereto. Duties of Trustee: Where a collective investment scheme is to be wound up, the trustee shall give notice disclosing the circumstances leading the winding up of the collective investment scheme in a daily newspaper having nationwide circulation and in the newspaper published in the language of the region where the Collective Investment Management Company is registered. The trustee shall dispose of the assets of the collective investment scheme concerned in the best interest of the unit holders of that collective investment scheme. The proceeds of sale realized, should be first utilized towards the discharge of such liabilities as are due and payable under the collective investment collective investment scheme and after making appropriate provision for meeting the expenses connected with such winding up, the balance shall be paid to the unit holders in proportion to their unit holding. After the completion of the winding up, the trustee shall forward to SEBI and the unit holders - a report on the steps taken for realization of assets of the collective investment scheme, expenses for winding up and net assets available for distribution to the unit holders, and a certificate from auditors of the collective investment scheme to the effect that all the assets of the collective investment scheme are realized and details of the distribution of the proceeds. The unclaimed money if any at the time of winding up shall be kept separately in a bank account by the trustee for a period of three years for the purpose of meeting investors' claims and thereafter shall be transferred to investor protection fund, as may be specified by SEBI.