Investment of sinking fund

(1) All moneys paid into any sinking fund shall as soon as possible, be invested by the Board in -

(a) Government securities or (b) securities guaranteed by the Central or State Government; or (c) debentures issued by any local authority, or (d) debentures issued by the Board.

(2) All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt be paid into the sinking fund and invested in the manner laid down in sub-section (1),

(3) Any investment under this section may, from time to time subject to the provisions of sub-section (1) be varied or transposed.