Employees’ securities ‑ Investment of employees’ securities in National Defence Certificates ‑ Whether permissible - Companies Law - Letter : No. 8/7(417)/63‑PR,

SECTIONS 417 418 Letter : No. 8/7(417)/63 ‑ PR, dated 25 ‑ 1 ‑ 1963. Subject:- Employees securities ‑ Investment of employees securities in National Defence Certificates ‑ Whether permissible The deposit of the moneys in the National Defence Bonds would not be in strict accordance with sub‑section (1) of section 417. But as long as the moneys and the accruals therefrom are utilised only for the purposes agreed to in the contracts of service as provided in section 417(2), it is felt that no objection need be taken to the investment of the moneys in question in National Defence Bonds, which would be as safe as investment in a Post Office Savings Bank account mentioned in section 417(1)(a). It would, however, be for the company to ensure that necessary ready cash is kept available for meeting the legitimate payments (refunds, etc.) out of the security money as and when required.