Para 10.11 — CAM
Original Rule Text
10.11 INVESTMENTS
10.11.1 Investments are made by Government mostly in Public Sector Undertakings or statutory corporations. In addition to the scrutiny of sanctions for payment on the lines of payment of loans and other bills, PAO shall also ascertain whether Government has actually received shares against the investment
(s) made by it in the concerned company. A record of the investments made by Union Government in statutory corporations, public sector companies, other joint stock companies, cooperative banks and societies etc. shall be kept in a "Register of Investments" in Form CAM-60. This register shall be maintained by the Pr.Accounts Office or Pay and Accounts Office responsible for the release of funds for investments. The receipt of dividends shall also be watched through this register.
10.11.2 PAO shall obtain the following from the Ministry/Department concerned for maintaining the Register of Investments-
(a) Whether the concerned company etc. has issued share scrip for the full value of investment to the Government, in the name of the President of India;
Name and designation of the officer responsible for the safe custody of share scrip;
(c) Whether share scrip is in the custody of the officer or kept in the accredited public sector bank or it has been kept in stock with the RBI, (Public Debt Office);
(d) Whether physical verification of the share scrip is done periodically;
(e) Details of the dividend declared by the companies; and
(f) Full particulars on the realization of dividend from the company and their credit to Government account, verifying their actual credit in Government account.
What This Means
When the Government invests in Public Sector Undertakings or statutory corporations, the PAO must verify that the Government has actually received shares against the investment. A Register of Investments (Form CAM-60) must be maintained to record all investments, track share scrips, and watch for dividend receipts. The PAO should verify safe custody of share scrips and confirm that dividends are realized and credited to Government account.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PAO must verify that Government has received shares against investments made
- 2Register of Investments maintained in Form CAM-60 by the Pr.AO or PAO releasing funds
- 3PAO must verify share scrips are in safe custody and physically verified periodically
- 4Dividend declarations and their actual realization into Government account must be tracked
- 5Share scrips must be in the name of the President of India
Practical Example
The Ministry of Heavy Industries invests Rs 100 crore in a new CPSE. The PAO records this in the Register of Investments (Form CAM-60), verifies that the company has issued share scrips for the full investment value in the name of the President of India, and confirms which officer is responsible for their safe custody. When the company declares a dividend, the PAO verifies that the dividend amount has actually been credited to the Government account.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
In whose name must government investment share scrips be issued?▼
What details must the PAO obtain about investments?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.