CHAPTER VI
MISCELLANEOUS
PART I
AMENDMENTS TO THE INDIAN TRUSTS ACT, 1882
Commencement of this Part.
129. The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Notes on Clauses:
Clauses 129 and 130 seek to amend section 20 of the Indian Trusts Act, 1882 [as substituted by section 2 of the Indian Trusts (Amendment) Act, 2016], relating to investment of trust money.
The provisions of the aforesaid section, inter alia, provides that where trust-property consists of money and cannot be applied immediately or at an early date, 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 authorised by the instrument of trust or as specified by the Central Government, by notification in the Official Gazette.
The said section further provides 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 any greater estate, no investment in any of the securities or class of securities mentioned above shall be made without his consent in writing.
It is proposed to amend the said section so as to provide that the trustee can make investment of such money as expressly authorised by the instrument of trust or in any of the securities or class of securities as specified by the Central Government by notification in the Official Gazette.
It is further proposed to amend the proviso to the said section so as to omit the expression "in any of the securities or class of securities mentioned above" occurring therein, which is consequential in nature.
This amendment shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
