NO NEW INVESTMENT IN SDS AFTER JUNE 30, 2003
Government has decided
that no new investment in the Special Deposit Scheme (SDS) shall
be allowed after 30th June 2003. The accretions in
the corpus of the scheme on account of interest shall be invested
as per the new pattern of investment for incremental accretions
issued by Ministry of Finance dated 6th March, 2003.
The Refund of deposits, before their repayment becomes due, will
be allowed, in the event of winding up of the related establishment
followed by the disposal and realisation of the fund’s investment
for settlement of the claims on the fund by the employees, obligatory
payments by an eligible fund, to make payments under the scheme
of Insurance entered into with insurance companies regulated by
the Insurance Development and Regulatory Authority (IRDA) including
Life Insurance Corporation of India (LIC) or for purchase of annuities
from these companies/LIC.
SDS in this form
will be extended till such time as Government may notify and the
Government may make repayment of the outstanding balance under
the Scheme through issue of dated Government securities to the
subscribers of the Scheme for such amount and maturity as it may
decide, in consultation with the subscribers.
