Cabinet clears amendment to the Indian Trusts Act

The Cabinet on Friday cleared amendments to the Indian Trusts Act,1882 to remove its outdated provisions. 

The amendment bill will be tabled in the current session of  Parliament, an official statement said here.  

The Act binds a trustee to invest money of the trust in securities enumerated in the section 20 of the Act, in case the trust  property consists of funds which cannot be used immediately or at an early date for  the purpose of the trust. 

The section has some obsolete  provisions such as those relating to promissory notes,  debentures,  stock and  other securities of  the United Kingdom  and Ireland and also bonds, debentures and annuities charged or secured by British Parliament.  

The Law Commission in its report  had earlier recommended that it is better not to enumerate particular securities but to give a general  definition of all categoris of securities which are in vogue in the market and the securities which have become obsolete may be deleted. In accordance with this the section 20 ia likely to be amended.