Investment of funds

Corporate1960195 sections

Statutory text

(1) Subject to the provisions of sub-section (2) and (3), a society may invest or deposit its funds,-
- (a) in Government Savings Bank; or
- (aa) in a Co-operative Bank; or
- (b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (2 of 1882); or
- (c) with the federal society of which it is a member or in the purchase of the share thereof; or
- (d) with the approval of the Registrar, with any other society with limited liability or in the purchase of the shares or securities or debentures thereof; or
- (e) with any bank approved for this purpose by the Registrar and on such terms and conditions, if any, as may be laid down by him in this behalf: Provided that the approval of the Registrar shall not be necessary under clause (d) if shares are to be purchased to become a member thereof according to the bye-laws of such society.
(2) The reserve fund of a society shall be invested or utilized only in such manner and on such terms and conditions as may be laid down by Registrar in this behalf.
(3) No investment of any of its funds in immovable property, other than funds created for specified purposes, shall be made by a society other than a housing society without the approval of the Registrar.
(4) A society accepting deposits shall maintain, as a cover against such deposits, fluid resources to such extent and in such manner as may be specified by the Registrar from time to time.

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