Rule 302: Trust and trustee conditions for a superannuation fund
Rule 302 sets conditions on the trust and trustees of a superannuation fund. Rules 301 to 315 govern approved superannuation funds under Part B of Schedule XI to the Act. The fund and trust must be established in India, there must be at least two trustees, a company may be a trustee only with prior approval of the approving authority, and trustees must be resident in India.
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Bare law
Rule 302 - Conditions regarding trust and trustees
(1) The fund and the trust shall be established in India.
(2) The trust shall have at least two trustees, provided that a company as defined in section 2(20) of the Companies Act, 2013 (18 of 2013) shall not be appointed as a trustee without the prior approval of the approving authority.
(3) The trustees of the fund shall be a resident in India and any trustee who leaves India permanently shall vacate his office.
Rule breakdown
Conditions
Fund and trust established in India.
At least two trustees.
A company (section 2(20), Companies Act, 2013) cannot be appointed trustee without prior approval of the approving authority.
Trustees must be resident in India; a trustee who leaves India permanently vacates office.
Key takeaways
India-based
Fund and trust must be in India.
Two trustees
Minimum of two.
Residency
Trustees must be resident in India.
Practical checklist
- Replace a trustee promptly if one leaves India permanently.
Avoid
- Do not appoint a corporate trustee without prior approval.
FAQs
How many trustees are needed?
At least two (Rule 302(2)).
Can a company be a trustee?
Only with prior approval of the approving authority.
What if a trustee emigrates?
A trustee who leaves India permanently vacates office (Rule 302(3)).
Glossary
- Trustee
- A trustee of the trust under which the fund is established (Rule 301(d)).
- Resident
- Resident in India, required for trustees.