New Delhi: The government on Monday introduced a bill in the Lok Sabha proposing amendments in the 1882 Indian Trusts Act to allow trustees greater autonomy and flexibility in deciding their investments.
Finance Minister Pranab Mukherjee said the amendments
would "do away with the requirement of case-to-case approval
by the Government of `any security`. They also provide to the
trustees "greater autonomy and flexibility to take decisions
The Bill seeks to empower the central government to
notify a class of securities for the purpose of investment by
After the amendments to the Indian Trusts Act, he said,
trustees would be able to take investment decisions based on
their assessment of risk-return trade-off, provided they are
in accordance with the trust deed.
The amendments "would be consistent with the current
economic environment" and facilitate a shift from the
merit-based regulatory regime to the disclosure-based
regulatory system, Mukherjee said.
The proposal also said that no investment shall be made
without the consent of a person who is entitled to receive the
income of the trust-property either for his life or any