Rule 8: Duties of trustees

It shall be the duty of every trustee for depositors to-

(a)

ensure that the assets of the company on which charge is created together with the amount of deposit insurance are sufficient to cover the repayment of the principal amount of secured deposits outstanding and interest accrued thereon;

(b)

satisfy himself that the circular or advertisement inviting deposits does not contain any information which is inconsistent with the terms of the deposit scheme or with the trust deed and is in compliance with the rules and provisions of the Act;

(c)

ensure that the company does not commit any breach of covenants andprovisions of the trust deed;

(d)

take such reasonable steps as may be necessary to procure a remedy for any breach of covenants of the trust deed or the terms of invitation of deposits;

(e)

take steps to call a meeting of the holders of depositors as and when such meeting is required to be held;

(f)

supervise the implementation of the conditions regarding creation of security for deposits and the terms of deposit insurance;

(g)

do such acts as are necessary in the event the security becomes enforceable;

(h)

carry out such acts as are necessary for the protection of the interest of depositors and to resolve their grievances.