Section 4(2) in Pension Fund Regulatory and Development Authority (National Pension System Trust) Regulations, 2015
(2)In particular, and without prejudice to the generality of the foregoing provisions, the Trust Deed shall contain the following clauses, namely:-(a)the Board of Trustees' responsibility with regard to maintenance of third-party confidentiality of material information in its possession;(b)the responsibilities of the Board of Trustees with regard to taking of action on reports submitted by the intermediaries in order to ensure compliance with the regulations applicable to them under the National Pension System;(c)provisions requiring all trustees to disclose, the particulars of interest which they may have in any other company or institution or a body corporate by virtue of their position as director, partner or in any other capacity;(d)maintain an arms' length relationship with other companies or institutions or intermediaries or any entity with which he or she may be associated;(e)provision to the effect that a trustee not to participate in the meetings of the Board of Trustees when any decisions are being taken in which he or she may have a beneficial interest;(f)the Board of Trustees to have effective control over assets of the subscriber under the National Pension System or if so directed by the Authority in any other pension scheme governed by the provisions of the Act;(g)the subscribers to have beneficial interest in the assets of the trust limited to the extent of their individual holding in the subscribed schemes;(h)provision to the effect that the duty of the Board of Trustees shall be to act at all times in the interest of the subscribers and cause to provide the required information, excluding information which is of commercial importance or confidential in nature, to the subscribers;(i)the Board of Trustees to recommend to the Authority for taking suitable measures against any intermediary for violation of the Act, rules and regulations, which comes to its notice;(j)the National Pension System Trust shall be responsible for monitoring and evaluation of all operational and service level activities of all intermediaries including government nodal offices and such other entity or person connected with collection, management and recordkeeping and distribution of accumulations, under the National Pension System, in accordance with the provisions of the Act or the regulations made or guidelines or circulars issued by the Authority;(k)the National Pension System Trust shall be responsible for receiving, processing and settlement of claims made by the subscribers upon exit from National Pension System. The National Pension System Trust may delegate the activities of receiving and processing of such claims made by the subscribers upon exit from National Pension System to any other intermediary registered with the Authority, with the previous approval of the Authority;(l)the National Pension System Trust shall be the nodal point for co-ordination of the operations of all intermediaries;(m)explicitly forbidding of assumption of any unlimited liability or that which would result in encumbrance of the property vested in the Board of Trustees in any way;(n)provision to ensure that removal of a trustee of the National Pension System Trust, in all cases, shall be decided by the Authority;(o)provisions specifying the quorum and frequency of the meetings of the Board of Trustees;(p)the responsibility of the Board of Trustees to supervise the collection of any income due on assets held in the name of the National Pension System Trust and for claiming any repayment of tax and holding any income received in trust for the holders in accordance with the Trust Deed and regulations;(q)provisions for the terms of payment of fees to the trustees;(r)provision to the effect that amendment to the Trust Deed shall be carried as and when so directed by the Authority;(s)the Trust Deed shall not contain any clause which has the effect of-(i)limiting or extinguishing the obligations and liabilities of a trustee in relation to the subscribers under the Act; or(ii)indemnifying the trustees for loss or damage caused to the subscriber by the trustees' acts of negligence or acts of commission or omission.
