MINISTRY OF FINANCE
(Department of Company Affairs)
New Delhi, the 7th August, 2003
G.S.R. 641(E).- In exercise of the powers conferred by clause (a) of sub-section (1) of section 642, read with sub-section (1) of section 581ZL of the Companies Act, 1956 the Central Government hereby makes the following rules, namely :-
1. Short Title and Commencement.-
(1) These rules may be called the Producer Companies (General Reserves) Rules, 2003.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Applicability. – These rules shall apply to a company formed and registered under section 581C of the Companies Act, 1956.
3. Definition – “co-operative society” means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State.
4. Investment of general reserves – A producer company formed and registered under section 581C of the Companies Act, 1956, shall make investments from and out of its general reserves in the following manner, namely:-
(a) in approved securities, fixed deposits, units and bonds issued by the Central or State Governments or cooperative societies or scheduled bank;
(b) in a co-operative bank, State co-operative bank, co-operative land development bank or Central co-operative bank; or
(c) with any other scheduled bank;
(d) in any of the securities specified in section 20 of the Indian Trusts Act, 1882; or
(e) in the shares or securities of any other multi-State Co-operative society or any co-operative society; or
(f) in the shares, securities or assets of a public financial institutions specified under section 4A of the Companies Act, 1956.
(F. No. 1/1/2003-CL-V)