The Hindu : National : Nod for amendment to Trusts Act

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Tuesday, Dec 25, 2007
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Nod for amendment to Trusts Act

Special Correspondent

NEW DELHI: All public and private trusts would soon be able to invest in securities, including shares and bonds of listed companies, without much hassle. The Central Government would notify a class of securities that would be automatically eligible for investment by the trusts, as against the present practice where the Government allows trusts to make investments in securities on a case-to-case basis.

The Union Cabinet on Monday paved the way for the new arrangement by approving an amendment in this regard to the Indian Trust Acts. The amendment would be moved in Parliament in the next session of Parliament.

Securities made eligible

According to official sources, the securities that would be made eligible for investment by the trusts would include shares, scrips, bonds and debentures. At present, bulk of the surplus funds of the trusts is invested either in bank deposits or units issued by the Unit Trust of India.

Chaired by Prime Minister Manmohan Singh, the Cabinet also gave its nod for amendments in the air services agreement with Jordan on the lines of the agreement reached during the last round of bilateral air services talks earlier this year to bring it in tune with developments in international civil aviation and gave ex-post facto approval for signing a pact with Cyprus for cooperation on combating international terrorism, organised crime and illicit drug trafficking.

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