Section 13(1) in The Maharashtra Chit Funds Act, 1974
(1)For the proper conduct of a chit, every Foreman shall , before applying for the certificate of commencement under section 8,-(a)deposit in any approved bank, an amount equal to the chit amount; or(b)invest in State Government securities of the face value or market value whichever is less, an amount equal to the chit amount, and transfer the amount so deposited or the State Government securities in favour of the Registrar to be held in trust by him as security.
