Para 10.16 — MSO

10.16 Accountant General should keep a watch over investment of funds forming part of the Public Account of the State. It should be seen that the investments made on account of any regularly constituted Sinking or other Fund administered by the Government are of the category authorised by the statutory provisions by which the fund is governed. When there is no governing statutory provision or instrument, proper authority for the investment should be called for.

This principle also applies to investment of Cash Balances of a State Government. The Accountant General should promptly take up with the Government any of the investments which he considers to be unauthorised, irregular or unsound. Any ascertained losses connected with investments on unusual depreciation in the market price of any investment should also be reported to Government in a suitable manner with such comments as the Accountant General may think fit.