The Lok Sabha on 9 December 2015 passed the Indian Trusts (Amendment) Bill, 2015 by voice vote. The Bill seeks to amend the Indian Trusts Act, 1882 to remove the archaic provisions from the 133 year old legislation that have no relevance anymore.
Provisions of the Bill
• It seeks to do away with the seven categories of securities in which trust money can be invested as stated in the Act.
• It enables the Union Government to notify securities or class of securities for investment by trusts.
• It states to take consent of any person who is competent to contract and entitled to receive the trust income for his life.
• It also outlines the manner in which surplus funds of the trust may be invested for future use of the trust.
• It deletes all the other investment avenues specified in the Act.
Indian Trusts Act, 1882 regulates the functioning of private trusts and trustees in India. It also outlines the procedure for investment of surplus funds of the trust for future use.
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What: Passed by Lok Sabha
When: 9 December 2015