Kathmandu. Prestigious temples and charitable trusts could soon become active investors in India’s financial markets.
The Maharashtra state government has opened the door for public trusts to invest up to 50 per cent of their total amount in mutual funds and market-related equities with effect from July 21.
For decades, public trusts, whether religious institutions or social welfare institutions or education charities, were limited to investing in traditional instruments such as fixed deposits (FDs) and post office schemes. But now this situation has changed and the state government has allowed investment in mutual funds and bonds.
Maharashtra government’s big step
The charitable commissioner of Maharashtra has issued an order. Under this, trusts have been allowed to diversify their investment portfolio. The move gives trust fund management practices the ability to raise capital while maintaining compliance monitoring with contemporary investment strategies. Under the new guidelines, public trusts can now invest in these places.
- Mutual funds with at least 65 percent equity investment.
- Debt Mutual Fund regulated by SEBI.
- ETFS tracking indices such as BSE Sensex and NSE Nifty.
- Government and corporate debt securities (minimum 3 years maturity).
Shares TAG_OPEN_li_20 of companies with a market capitalization of Rs 5,000 crore or more.
Under this guideline, the policy focuses on flexibility as well as risk management. Under the guidelines, trusts can invest only under the guidelines. Under this, it has been said that eligible securities should have a minimum Doub A rating from at least two SEBI registered credit rating agencies. Where many ratings exist. The lowest two ratings will be considered.
There are 59,143 public trusts registered in the state, according to data from the Maharashtra charity commissioner’s office. However, there is no official data available on their collective funds. Market experts say, “These institutions collectively manage funds worth several thousand crores of rupees. ’
