Co-operative Housing Societies in Maharashtra now be investing in mutual funds & shares

By Realty Quarter Bureau

In a recent notification of Amendment section 20 of Indian Trust Act now more than 1lakh co-operatives housing societies in the state will be able to invest in mutual funds and shares. The cooperative housing societies are governed by the Maharashtra State Cooperative Societies Act 1960. The Act clearly says that a cooperative housing society can invest its funds in cooperative bank or securities described under the Trust Act.

The Trust Act now allows charitable trusts to be invested in government bonds, units of debt mutual funds regulated by Securities and Exchange Board of India (SEBI), debts issued by corporates, including banks and financial institutions, infrastructure-related debt instruments, Basel IIII Tier-I bonds issued by scheduled commercial banks under RBI guidelines, which are either listed or to be listed in case of fresh issue, debt securities issued by a corporate which is engaged in business of development and maintenance of infrastructure or construction or finance of lowcost housing.

The amendment also allows the cooperative housing societies to invest in shares listed either on Bombay Stock Exchange or National Stock Exchange of such companies whose market capitalisation is not less than Rs 5, 000 crore.

However, the notification has put the restriction that investment can be made only in such securities which have minimum AA or equivalent rating fr