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Union of India - Section
Section 20 in The Indian Trusts Act, 1882
20. Investment of trust-money. -
Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee shall, subject to any direction contained in the instrument of trust, invest the money in any of the securities or class of securities expressly authorized by the instrument of trust or as specified by the Central Government, by notification in the Official Gazette:Provided that where there is a person competent to contract and entitled in possession to receive the income of the trust-property for his life, or for any greater estate, no investment in any of the securities or class of securities mentioned above shall be made without his consent in writing.Explanation. - For the purposes of this section, the expression "securities" shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.] [Substituted by Notification No. 34 of 2016.]| 20. Investment of trust-money.- Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee is bound (subject to any direction contained in the instrument of trust) to invest the money on the following securities, and on no others:(a) in promissory notes,debentures, stock or other securities[of any State Government or] [Inserted by Act 31 of 1930, Section 2 and Sch.I.]of the Central Government or of the United Kingdom of Great Britain and Ireland:[Provided that securities, both the principal whereof and the interest whereon shall have been fully and unconditionally guaranteed by any such Government, shall be deemed, for the purposes of this clause, to be securities of such Government;] [Added by Act 18 of 1934, Section 2.](b) in bonds, debentures and annuities[charged or secured by the[Parliament of the United Kingdom] [Substituted by A.O.1937, for "charged by the Imperial Parliament on the revenues of India" .][before the fifteenth day of August, 1947] [Inserted by A.O.1948.]on the revenues of India or of the[Governor-General in Council or of any Province] [Substituted by A.O.1948, for "Federation" .]:[Provided that, after the fifteenth day of February, 1916, no money shall be invested in any such annuity being a terminable annuity unless a sinking fund has been established in connection with such annuity; but nothing in this proviso shall apply to investments made before the date aforesaid;] [Inserted by Act 1 of 1916, Section 2.](bb) [ in India three and a half per cent. stock, India three per cent. stock, India two and a half per cent stock or any other capital stock[which before the 15th day of August, 1947, was] [Inserted by Act 1 of 1916, Section 2.]issued by the Secretary of State for India in Council under the authority of an Act of Parliament[of the United Kingdom] [Inserted by A.O.1950.]and charged on the revenues of India][or which[was] [Inserted by A.O.1937.]issued by the Secretary of State on behalf of the Governor-General in Council under the provisions of Part XIII of the Government of India Act, 1935];(c) in stock or debentures of, or shares in, Railway or other Companies the interest whereon shall have been guaranteed by the Secretary of State for India in Council[or by the Central Government] [Inserted by Act 1 of 1916, Section 2.][or in debentures of the Bombay[Provincial] [Inserted by Act 21 of 1917, Section 2.]Co-operative Bank Limited, the interest whereon shall have been guaranteed, by the Secretary of State for India in Council][or the State Government of Bombay] [Insert6ed by A.O. 1937.];(d) [ in debentures or other securities for money issued, under the authority of[any Central Act or Provincial Act or State Act] [Substituted by Act 3 of 1908, Section 2, for Clause (d).], by or on behalf of any municipal body, port trust or city improvement trust in any Presidency-town, or in Rangoon town, or by or on behalf of the trustees of the port of Karachi:][Provided that after the 31st day of March, 1948, no money shall be invested in any securities issued by or on behalf of a municipal body, port trust or city improvement trust in Rangoon town, or by or on behalf of the trustees of the port of Karachi; ] [Inserted by A.O.1948.](e) on a first mortgage of immovable property situate in[any part of the territories to which this Act extends] [Substitued by Act 3 of 1951, Section 3 and Sch., for "a Part A State or a Part C State" .]:Provided that the property is not a leasehold for a term of years and that the value of the property exceeds by one-third, or, if consisting of buildings exceeds by one-half, the mortgage-money;[* * *] [The words "or" at the end of Clause (e) omitted and Clause (ee) inserted by Act 16 of 1975, Section 2 (w.r.e.f. 7.1.1975).](ee) [ in units issued by the Unit Trust of India under any unit scheme made under section 21 of the[Unit Trust of India Act, 1963 (52 of 1963)] [The words "or" at the end of Clause (e) omitted and Clause (ee) inserted by Act 16 of 1975, Section 2 (w.r.e.f. 7.1.1975).]; or](f) on any other security expressly authorized by the instrument of trust,[or by the Central Government by notification in the Official Gazette,] [Inserted by Act 16 of 1975, Section 2 (w.e.f. 7.1.1975).]or by any rule which the High Court may from time to time prescribe in this behalf:Provided that, where there is a person competent to contract and entitled in possession to receive the income of the trust-property for his life, or for any greater estate, no investment on any security mentioned or referred to in clauses (d), (e) and (f) shall be made without his consent in writing. |