Under the Indian Trusts Act, 1882, the purchase of redeemable stock at premium is:
Section 20A permits premium purchase of qualifying redeemable securities subject to its restrictions. The amended section 20 authorisation routes and qualifying…
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Under the Indian Trusts Act, 1882, the purchase of redeemable stock at premium is:
Answer and explanation
Correct answer C
Section 20A permits premium purchase of qualifying redeemable securities subject to its restrictions. The amended section 20 authorisation routes and qualifying income-holder written consent must also be considered. Premium purchase is not a free-standing permission to disregard the instrument, statutory restrictions or prudence.