TMI BlogIncome-tax (36th Amendment) Rules, 2016 - Investment of Providend fund moneys - INVESTMENT PATTERNX X X X Extracts X X X X X X X X Extracts X X X X ..... (2) (1) (2) (3) i. Government Securities and Related Investments : (a) Government Securities; (b) other securities, as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956, the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government, or any State Government; and/or (c) units of mutual funds set up as dedicated funds for investment in Govt. securities and regulated by the Securities and Exchange Board of India. Minimum forty-five per cent. and upto fifty per cent. ii. Debt Instruments and Related Investments: (a) Listed (or proposed to be listed in case of fresh issue) debt securities issued by bodies corporate, including banks and public financial institutions, which have a minimum residual maturity period of three years from the date of investment; (b) Basel III Tier-I bonds issued by scheduled commercial banks under the guidelines issued by the Reserve Bank of India; (c) Rupee Bonds having an outstanding maturity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n-Banking Financial Company and regulated by the Reserve Bank of India; (iv) Listed (or proposed to be listed in case of fresh issue) units issued by Infrastructure Debt Funds operating as a Mutual Fund and regulated by Securities and Exchange Board of India. Minimum thirty-five per cent. and upto forty-five per cent. iii. Short-term Debt Instruments and Related Investments (a) Money market instruments; (b) Units of liquid mutual funds regulated by the Securities and Exchange Board of India. (c) Term Deposit Receipts of up to one year duration issued by such scheduled commercial banks which satisfy all the conditions mentioned in sub-clause (d) of clause (ii). Upto five per cent. iv. Equities and Related Investments (a) Shares of body corporates listed on Bombay Stock Exchange or National Stock Exchange, which have,- (i) Market capitalization of not less than five thousand crore rupees as on the date of investment; and (ii) Derivatives with the shares as underlying, traded in either of the two stock exchanges; and/or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made in such bonds of a Scheduled commercial Bank from the Secondary Market: Provided also that the total portfolio invested, at any time, in Tier I bonds referred to sub-clause (b) of clause (ii) of the said Table shall not be more than two per cent. of the total portfolio of the fund; and (i) no investment in initial offerings shall exceed twenty per cent. of the initial offering, (ii) the aggregate value of Tier I bonds of any particular bank held by the fund at any point of time, shall not exceed twenty per cent. of such bonds issued by that Bank. Provided also that for sub-clause (c) of clause (ii) of the said Table, a single rating of AA or above by a domestic or international rating agency will be acceptable: Provided also that the debt securities covered under sub-clause (b) of clause (i) of the said Table shall be excluded from the securities covered under clause (ii) of the said Table. Provided also that in sub-clause (e) of clause (ii), fresh investment in Debt Mutual Funds shall not be more than five per cent. of the fresh accretions invested in the year and the portfolio invested in them shall not exceed five per cent. of the total portfolio of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fresh investment in such mutual funds shall not be in excess of five per cent. of the fresh accretions invested in the year: Provided also that the portfolio invested in derivatives in terms of contract value shall not be in excess of five per cent. of the total portfolio invested in sub-clauses (a) to (d) of clause (iv) of the said Table: Provided also that investment under clause (v) of the said Table shall only be in listed instruments or fresh issues that are proposed to be listed: Provided also that investment under clause (v) of the said Table shall be made only in such securities which have minimum AA or equivalent rating in the applicable rating scale from at least two credit rating agencies registered by the Securities and Exchange Board of India under Securities and Exchange Board of India (Credit Rating Agency) Regulations, 1999: Provided also that in case of the sub-clause (b) and (d) of the clause (v) of the said Table, the ratings shall relate to the rating of the sponsor entity floating the trust: Provided also that if the securities/entities have been rated by more than two rating agencies, the two lowest of the ratings shall be considered: Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d funds from the past and receipts like contributions to the funds, dividend, interest, commission, amount received on the maturity of investment made prior to the 1st day of April, 2015 etc., as reduced by obligatory outgo during the financial year. (ii) the expression Government securities shall have the meaning assigned to it in clause (b) of section 2 of the Securities Contracts (Regulation) Act, 1956; (iii) the expression Infrastructure for the purposes of sub-clause (f) of clause (ii) of the Table shall have the meaning as referred to in Notification dated 2nd March, 2015 (F No 11/14/2013-PR) of Department of Financial Services. (iv) the expression public financial institutions shall have the meaning as assigned to it under section 2 of the Companies Act, 2013 (1 of 2013) ; (v) the expression public sector company shall have the meaning assigned to it in clause (36A) of section 2 of the Income-tax Act; (vi) the expression securities shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.] [201, F. No. 370142/4/2016-TPL] ABHISHEK GAUTAM, Under Secy. (Tax Policy Legislation) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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