The Indian Trusts Amendment Act, 2016 (Act No. 34 of 2016), received the President's assent on July 26, 2016, and was published in the Gazette of India on July 27, 2016. The Act amends the Indian Trusts Act, 1882. Key changes include a substituted section 20, which pertains to the investment of trust money. The amended section 20 stipulates that trustees must invest money in securities or classes of securities expressly authorized by the trust instrument or as specified by the Central Government via notification in the Official Gazette, subject to any directions in the trust instrument. The consent of the income recipient is required for certain investments. The definition of "securities" aligns with clause (h) of section 2 of the Securities Contracts Regulation Act, 1956. Furthermore, the Act omits the proviso in subsection 1 of section 20A of the principal Act. Dr. G. Narayana Raju, Secretary to the Government of India, Legislative Department, is noted.
Key Entities Referenced
Indian Trusts Amendment Act, 2016: An Act further to amend the Indian Trusts Act, 1882.
Indian Trusts Act, 1882: The principal Act being amended by the Indian Trusts Amendment Act, 2016.
Parliament: The legislative body that enacted the Indian Trusts Amendment Act, 2016.
Central Government: The government body responsible for appointing the date on which the Act comes into force via notification in the Official Gazette and specifying securities for trust money investment.
Official Gazette: The official publication where the Central Government will announce the commencement date of the Indian Trusts Amendment Act, 2016.
Securities Contracts Regulation Act, 1956: Act defining the meaning of securities as referenced in the Indian Trusts Amendment Act, 2016.
Finance Act, 2016: A separate Act for which corrigenda are published in the same Gazette issue.
G. Narayana Raju: Secretary to the Govt. of India.
jftLVªh lañ Mhñ ,yñ—(,u)04@0007@2003—16
REGISTERED NO. DL—(N)04/0007/2003—16
vlk/kkj.k
EXTRAORDINARY
Hkkx [k.M
II — 1
PART II—Section 1
izkf/kdkj ls izdkf'kr
PUBLISHED BY AUTHORITY
lañ ubZ fnYyh] cq/kokj] tqykbZ 27] 2016@Jko.k 5] 1938 ¼'kd½
41]
No. 41] NEW DELHI, WEDNESDAY, JULY 27, 2016/SHRAVANA 5, 1938 (SAKA)
bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA
Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 27th July, 2016/Shravana 5, 1938 (Saka)
The following Act of Parliament received the assent of the President on the
26th July, 2016, and is hereby published for general information:—
THE INDIAN TRUSTS (AMENDMENT) ACT, 2016
(NO. 34 OF 2016)
[26th July, 2016.]
An Act further to amend the Indian Trusts Act, 1882.
BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as
follows:—
1. (1) This Act may be called the Indian Trusts (Amendment) Act, 2016. Short title
and com-
(2) It shall come into force on such date as the Central Government may, by mencement.
notification in the Official Gazette, appoint.
2 of 1882. 2. For section 20 of the Indian Trusts Act, 1882 (hereinafter referred to as the principal Substitution
Act), the following section shall be substituted, namely:— of new
section for
section 20.
‘20. Where the trust-property consists of money and cannot be applied Investment
immediately or at an early date to the purposes of the trust, the trustee shall, subject to of trust-
money.
any direction contained in the instrument of trust, invest the money in any of the
securities or class of securities expressly authorised by the instrument of trust or as
specified by the Central Government, by notification in the Official Gazette:
Provided that where there is a person competent to contract and entitled in
possession to receive the income of the trust-property for his life, or for any greater2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. I]
estate, no investment in any of the securities or class of securities mentioned above
shall be made without his consent in writing.
Explanation.—For the purposes of this section, the expression “securities”
shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities
Contracts (Regulation) Act, 1956.’. 42 of 1956.
Amendment 3. In section 20A of the principal Act, in sub-section (1), the proviso shall be omitted.
of section
20A.
————
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.
————
CORRIGENDA
In the FINANCE ACT, 2016 (28 of 2016) as published in the Gazette of India,
Extraordinary, Part II, Section I, Issue No. 32, dated the 14th May, 2016,—
Page No. Line(s) No. For Read
55 26 ‘ ‘‘or inposable’’ ’ ‘ ‘‘or imposable’’ ’
86 31 ‘ ‘‘section 45ZL’’ ’ ‘‘section 45ZI’’
88 41 - ‘‘Appelate Tribunal.’’
(in the marginal
heading against 68N.)
PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI—2016.
GMGIPMRND—1909GI(S3)—27.07.2016.