Lok Sabha passes Indian Trusts (Amendment), Bill 2015

ಜ್ಞಾನಸೆಲೆ

ಜ್ಞಾನಸೆಲೆ GK4KPSC ಸಾಮಾನ್ಯ ಜ್ಞಾನ

The Lok Sabha has passed the Indian Trusts (Amendment) Bill, 2015, which seeks to amend the Indian Trusts Act, 1882 (Principal Act). The amendment would enable the Central Governmen to remove outdated provisions occurring in section 20 of the Indian Trusts Act, 1882 which have no relevance and retain only the last item. 

Key facts about  Indian Trusts (Amendment), Bill 2015 

1. The amendment enables the Central Government to notify securities or class of securities for investment by trusts and to remove the outdated provisions occurring in section 20 of the Indian Trusts Act, 1882.
2. The Bill provides more autonomy and flexibility to the trustees so that they can take decision on investment of trust money based on their assessment of the risk return and other factors.
3. The bill seeks to do away with age old provision of  case to case approval by the Government for investment in any security.

Indian Trusts Act, 1882

1. The Principal Act ( Indian Trusts Act, 1882) regulates the functioning of private trusts and trustees.  It also outlines the manner in which surplus funds of the trust may be invested for future use of the trust
2. The Act lists seven categories of securities in which trust money can be invested.  These include some pre-Independence references such as securities issued by the United Kingdom, by municipalities of Presidency towns, Rangoon, port trust of Karachi etc.
3. In addition, the Act allows investment in any security expressly authorised by the instrument of trust or by the central government by notification, provided that consent is taken of any person who is competent to contract and entitled to receive the trust income for his life.