(1)For the proper conduct of the chit, every foreman shall, before applying for a previous sanction under section 4,—[(a) (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 is less) of not less than one and a half times the chit amount in favour of the Registrar; or(c)transfer in favour of the Registrar such other securities, being securities in which a trustee may invest money under section 20 of the Indian Trusts Act, 1882 (2 of 1882), of such value, as may be prescribed by the State Government from time of 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.
