In capital market, a trustee is having a number of rights and obligations. Is it correct? Describe the rights and obligations of a trustee.

Yes, the statement is correct. The trustee has a right and also a number of obligations. Regulation 18 of SEBI (Mutual Funds) Regulations, 1996 lays down the following rights and obligations for the trustees: The trustees and the AMC shall with the prior approval of SEBI enter into an investment management agreement. Such agreement shall contain all the clauses as prescribed in these Regulations or as well as other clauses necessary for the purpose of making investments; The fourth Schedule contains clauses which are to be included as contents of the investment management agreement. The trustees are entitled to obtain from the AMC all the information which the trustees consider necessary; The trustees shall ensure before the launch of any scheme that the asset management company has- systems in place for its back office, dealing room and accounting; appointed all key personnel including fund manager(s) for the scheme(s) and submitted their bio-data which shall contain the educational qualification, past experience in the securities market with the trustees, within 15 days of their appointment; appointed auditors to audit its accounts; appointed a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines, instructions etc. issued by the board or the Central Government and for redressal of investors grievances. appointed registrars and laid down parameters for their supervision; prepared a compliance manual and designed internal control mechanisms including internal audit systems; specified norms for empanelment of brokers and marketing agents; obtained, wherever required under these regulations, prior in-principle approval from the recognized stock exchange(s) where units are proposed to be listed. The compliance officer appointed under clause (d) of sub-regulation (4) shall immediately and independently report to SEBI any non-compliance observed by him. The trustees shall ensure that the asset management company (AMC) has been diligent in empanelling the brokers, in monitoring the securities transactions with brokers and avoiding undue concentration of business with any broker; The trustees shall ensure the AMC has not given any undue or unfair advantage to any associate or dealt with any of the associates of the AMC in a manner detrimental to the interest of the unit holders; The trustees shall ensure that the transaction entered into by the AMC or in accordance with these regulations and the mutual fund scheme concerned; The trustees shall ensure that the AMC has been managing the mutual fund schemes independently of other activities and have taken adequate steps to ensure that the interest of the investors of one scheme are not being compromised with those of any other scheme or of other activities of the AMC; The trustees shall ensure that all the activities of the AMC are in accordance with the provisions of these regulations;