Investment of the Fund

Finance202513 sections

Statutory text

(1) The balance available in the Fund shall be invested in Government of India securities, Special Securities of Government of India, Treasury Bills, State Government Securities or other approved securities as per the procedure laid down for such investments, in the rules notified under this Act.
(2) On maturity of the securities, the proceeds will be collected and credited to the account or reinvested in accordance with the pattern outlined above based on instructions received from the Government.
(3) The Fund Manager shall arrange to redeem the securities on maturity. In case of premature disinvestments to meet the payments on account of the claims to be paid, the Fund Manager shall decide on the securities to be liquidated and sell the securities at the ruling price and credit the amount realized to the Government account.
(4) If these securities are in loss, the Fund Manager may, in consultation with the Government, decide on the securities to be liquidated.

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