New Delh, Oct 8 (UNI) The Cabinet today cleared a Bill to carry out Amendment to Section 20 of the Indian Trust Act, 1882, which relates to investment of trust money.
In accordance with this section, where the trust property consists of money and cannot be applied immediately or at an early date to the purpose of the trust, the trustee is bound (subject to any direction contained in the instruments of trust) to invest the money in securities enumerated in clauses (a) to (f) of that section.
Briefing newspersons on the outcome of the Cabinet meeting, Finance Minister P Chidambaram said this section has obsolete provisions such as those relating to Promissory Notes, debentures, stock and other securties of the United Kingdom and Great Britain and Ireland, bonds, debentures and annuties charged or secured by Parliament of the UK.
The Law Commission in its 17th Report had discussed the Indian Trust Act 1882 and inter-alia had recommedend that was better not to enumerate particular securites but to give a general definition of all categories of securities which are in vogue in the market and that the securities which have become obsolete may be deleted.
UNI GS RL HT1952