Section 53 in The M.P. Gram Panchayats (Accounts) Rules, 1999
53. Investments.
- All the surplus funds of the Panchayat must be invested in the small savings schemes of the Government or be kept in the fixed deposits with the nationalized banks. If the Panchayat decides to invest its funds in any other manner, to get better returns, prior permission of the Collector/ Director, Panchayat shall have to be obtained in writing. However, under no circumstances investment shall be allowed to be made in any speculative securities or activities. The details of the investments made shall be kept in the investment register in Form GP-11. The Sarpanch shall Irresponsible for the safe custody of the securities. The Sarpanch and Secretary shall also be responsible for timely realisation of the income due from the investments and its encashment on maturity.
