Section 20(1) in Jammu and Kashmir Chit Funds Act, 2016
(1)For the proper conduct of the chit, every foreman shall, before applying for a previous sanction under section 4,-(a)deposit in an approved bank an amount equal to the chit amount in the name of the Registrar ; or(b)transfer Government securities of the face value or market value (whichever) of not less than one and a half times the chit amount in favour of the Registrar ; or(c)transfer in favour the Registrar such other securities, being securities in which a trustee may invest money under section 20 of the Trusts Act (Samvat 1977) of such value, as may be prescribed by the Government from time to time ; Provided that the value of the securities referred to in Clause (c) shall not in any case, be less than one and a half times the value of the chit amount.
