A Bill to provide greater autonomy and flexibility to trustees of private trusts as regards investment of trust-money was introduced in Lok Sabha on Thursday.
The Indian Trusts (Amendment) Bill 2015 was introduced in the lower house by Jayant Sinha, Minister of State for Finance.
This Bill empowers the Central Government to notify a class of securities for the purpose of investing trust-money. It also proposes to do away with the requirement of case-to-case approval by the Government of “any security”.
The proposed changes are consistent with the current economic environment and the present shift from a merit-based regulatory regime to a disclosure based regulatory regime, according to the statement of objects and reasons of the Bill.
This Bill also proposes to delete reference to the outdated and obsolete securities from the Indian Trusts Act 1882.
The Law Commission of India had in its 17th report recommended amendment of Section 20 and deletion of the provisions for securities that had become obsolete.