An Act to provide for the establishment of a Corporation with a view to encouraging saving and investment and participation in the income, profits and gains accruing to the Corporation from the acquisition, holding, management and disposal of securities Be it enacted by Parliament in the Fourteenth Year of the Republic of India as follows:
(1) This Act may be called the Unit Trust of India Act, 1963.
(2) It extends to the whole of India.
(3) It shall come into force on such date1*as the Central Government may, by notification In the official Gazette, appoint.
In this Act, unless the context otherwise requires,-
(a) "Board" means the Board of Trustees constituted under Section 10 or Section 41;
(b) "Contributing Institutions" means an institution which is, for the time being, a contributory to the initial capital of the Trust under Section 4;
(c) "Contribution certificate" means a certificate issued under Section6;
1*[(ca) "Development Bank" means the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964)]:
2*[(cb)] "First unit scheme" means the unit scheme made before the commencement of the Unit Trust of India (Amendment) Act, 1966];
3*[(cc) "General Insurance Corporation" means the General Insurance Corporation of India formed under Section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972)];
(d) "Initial capital" means the capital of the Trust referred to in Section4;
(e) "Life Insurance Corporation" means the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956);
(f) "Prescribed" means prescribed by regulations made under this Act;
3*[(fa) "Public financial institution" means every financial institution, other than the Trust, specified by or under Seq. 4-A of the Companies Act, 1956 (1 of 1956)];
(g) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934);
(h) "Scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);
4*[(i) "Security" means-
(a) Any share, stock, bond, debenture or debenture stock, of any body corporate;
(b) Any unit or sub-unit issued by, or other participation in a unit scheme framed by, any body or authority (not being the Trust) outside India or a mutual fund established outside India; and includes-
(i) A government security as defined in Section 2 of the Public Debt Act, 1944 (18 of 1944);
(ii) A savings certificate to which the Government Savings Certificates Act, 1959 (46 of 1959), applies;
(iii) Any security issued by any local authority in India, or by the Government of, or a local authority in, any such country outside India as may be approved by the Reserve Bank; and
(iv) Any foreign security as defined in Section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973), as may be approved by the Reserve Bank.]
(j) "State Bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
5*[(jj) "Subsequent unit scheme" means any scheme made after the commencement of Unit Trust of India (Amendment) Act, 1966;]
(k) "Subsidiary bank" has the same meaning as in Section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(l) "Trust" means the Unit Trust of India established under Section3;
(m) " Trustee" means a trustee appointed, nominated or elected under Section 10 or Section 41;
(n) "Unit" means a unit issued under6[a unit scheme;]
(o) "Unit capital" means the aggregate of the face value of the units sold under6[a unit scheme] and outstanding for the time being;
(p) "Units certificate" means a certificate issued to the purchaser of a unit under6[a unit scheme];
(q) "Unit holder" means a person for the time being recognised by the Trust as the holder of a unit certificate under6[a unit scheme];
(r) "Unit scheme" means a scheme made under Section 21.
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