Section 7(3) in The Companies (Acceptance of Deposits) Rules, 2014
(3)No person including a company that is in the business of providing trusteeship services shall be appointed as a trustee for the depositors, if the proposed trustee -(a)is a director, key managerial personnel or any other officer or an employee of the company or of its holding, subsidiary or associate company or a depositor in the company;(b)is indebted to the company, or its subsidiary or its holding or associate company or a subsidiary of such holding company;(c)has any material pecuniary relationship with the company;(d)has entered into any guarantee arrangement in respect of principal debts secured by the deposits or interest thereon;(e)is related to any person specified in clause (a) above.
