Section 19 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990
The Corporation may invest its moneys in the securities of the Central Government or any State Government or in such other manner as may be prescribed.
Summary
- The Corporation is legally allowed to invest the money it holds.
- It can buy securities issued by the Central Government.
- It can also buy securities issued by any State Government.
- It might be able to invest its money in other ways if the government makes specific rules allowing it.
Practical examples
FAQ
1. Can the Corporation invest its money in the stock market?
The law only specifically mentions Central or State Government securities. Other methods are only allowed if they are formally prescribed in the rules.
2. Is the Corporation forced to invest its money?
No, the law says it may invest its money, giving it the choice to do so.
3. Can it buy bonds from a local city council?
The text only lists Central Government and State Government securities. Anything else would require a specific rule to be written.
Test yourself
Q1.Under Section 19 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, which of the following is a specifically approved destination for the Corporation's investments?
Q2.Under Section 19 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, does the Corporation have the option to use investment methods not explicitly named in the Act?
Q3.Under Section 19 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, who must issue the securities for them to be an automatic, legal investment for the Corporation?
Q4.Under Section 19 of The Prasar Bharati (Broadcasting Corporation of India) Act, 1990, is the Corporation legally required to invest all of its spare money?