SGCCI Pushes for Relaxation in Charitable Trust Investment Rules in Gujarat, Cites Maharashtra Model

SGCCI has formally submitted a request to Gujarat's Charity Commissioner, R.V. Vyas, urging for relaxation of rules governing the investment of funds by public and charitable trusts.

By Times News Network On Jul 22, 2025

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Surat, Gujarat – In a bold move to reform outdated regulations, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) has formally submitted a request to Gujarat’s Charity Commissioner, R.V. Vyas, urging for relaxation of rules governing the investment of funds by public and charitable trusts. This request seeks to replicate the progressive model recently implemented in Maharashtra.

Currently, under Circular No. 27/2020 dated 16th November 2020, charitable trusts in Gujarat can invest surplus funds in mutual funds — but only after securing prior approval from the Charity Commissioner. This bureaucratic requirement, according to SGCCI, hinders quick and efficient financial decision-making by trustees.

In stark contrast, Maharashtra’s Circular No. 619 allows trustees to invest up to 50% of their trust funds in various SEBI-regulated instruments, including government securities, debt mutual funds, listed company shares with a market cap above ₹500 crore, and index funds — all without requiring prior approval.

“Charitable trusts in Gujarat are currently shackled by an outdated approval system,” said SGCCI President Nikhil Madrasi. “If Gujarat adopts a policy similar to Maharashtra’s, trustees will be empowered to make swift, sound financial decisions, ensuring better utilisation of public funds. Efficient trustees will no longer be bogged down by red tape.”

Madrasi further emphasized that transparency would not be compromised, as post-investment reporting could ensure accountability. “This reform will unleash the potential of public trusts to contribute more effectively to social development while safeguarding investor confidence and compliance,” he added.

To further the discussion, SGCCI has organized a key meeting on July 26, 2025, at 5:00 PM at Samruddhi, Nanpura, Surat. The meeting will bring together trustees from across Surat to deliberate on the proposed policy changes and explore collaborative solutions to streamline fund management.

The SGCCI’s initiative marks a crucial turning point in the regulatory framework surrounding Gujarat’s nonprofit sector. If the proposed relaxation is accepted, it could redefine how charitable trusts operate in the financial market — prioritizing efficiency, growth, and good governance over procedural delays.