The National Investment (Unit) Trust Ordinance, 1965

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     THE NATIONAL INVESTMENT (UNIT) TRUST ORDINANCE,
                          1965




                                         CONTENTS
1.     Short title, extent and commencement

2.     Definitions

3.     Units to be transferable movable property

4.     Power of Federal Government to authorize issue of Bearer Certificates

5.     Units to be approved securities

6.     Trust Deed to be binding on the holders of Units

7.     Notice of trust not receivable

8.     Act XVIII of 1891 to apply

9.     Power to make rules




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      THE NATIONAL INVESTMENT (UNIT) TRUST ORDINANCE, 1965
                                   ORDINANCE No. VII OF 1965

                                                                                       [8th April, 1965]
                                                    AN

                                               ORDINANCE

             to provide for certain matters relating to the National Investment (Unit) Trust

        WHEREAS it is expedient to provide for certain matters relating to the National Investment
(Unit) Trust and for matters connected therewith;

        AND WHEREAS the National Assembly is not in session and the Acting President is
satisfied that circumstances exist which render immediate legislation necessary;

       NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 29 of the
Constitution and of all other powers enabling him in that behalf, the Acting President makes and pro-
mulgates the following Ordinance:⸻

       1. Short title, extent and commencement.___(1) This Ordinance may be called the National
Investment (Unit) Trust Ordinance, 1965.

       (2) It extends to the whole of Pakistan.

       (3) It shall come into force at once.

       2. Definitions.___(1) In this Ordinance, unless there is anything repugnant in the subject or
context,___

              (a)     “Management Company” means the National Investment Trust Limited, and
                      includes any other company for the time being managing the affairs of the
                      Trust;
              (b)     “rules” means rules made under this Ordinance;
              (c)     “Trust” means the National Investment (Unit) Trust constituted under the
                      Trust Deed or, if that Trust is reconstituted, the reconstituted trust;
              (d)     “Trustee” means the National Bank of Pakistan, as trustee under the Trust
                      Deed and includes its successors, or if the Trust is reconstituted, the trustees of
                      the reconstituted trust;
              (e)     “Trust Deed” means the deed of trust dated the 12th November, 1962,
                      constituting the National Investment (Unit) Trust, made between the National
                      Investment Trust Limited, a limited liability company registered under the
                      Companies Act, 1913 (VII of 1913), with its registered office at Karachi as
                      Management Company of the one part, and the National Bank of Pakistan, a
                      bank constituted under the National Bank of Pakistan Ordinance, 1949 (XIX
                      of 1949), having its head office at Karachi as Trustee of the other part, and
                      includes any supplemental deeds made in accordance with the aforesaid deed.

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        (2) All other expressions defined or used in the Trust Deed but not defined in this Ordinance
shall have the same sense as is given to them in the Trust Deed.

       3. Units to be transferable movable property.—Subject to the rules and the provisions of
the Trust Deed, Units shall be deemed to be transferable movable property.

        4. Power of 1[Federal Government] to authorize issue of Bearer Certificates.—
Notwithstanding anything to the contrary contained in any other law for the time being in force, but
subject to rules, the 1[Federal Government] may, by notification in the official Gazette, authorise the
Trust to issue Bearer Certificates in respect of the Units sold, and no Bearer Certificates shall be
issued by the Trust unless so authorised.

        5. Units to be approved securities.—Notwithstanding anything to the contrary contained in
any law for the time being in force, the Units shall be deemed to be included among the securities
enumerated in section 20 of the Trust Act, 1882 (II of 1882), and to be approved securities and
approved investments for the purposes of the Insurance Act, 1938 (IV of 1938) and section 282B (2)
of the Companies Act, 1913 (VII of 1913).

        6. Trust Deed to be binding on the holders of Units.—Notwithstanding anything to the
contrary contained in any other law for the time being in force but subject to section 4 of this
Ordinance, the provisions of the Trust Deed shall be binding upon every Certificate Holder and his
heirs, successors and legal representatives as if he were a party to the Trust Deed having full
knowledge of its contents.

        7. Notice of trust not receivable.—No notice of a trust, express, implied or constructive,
shall be receivable by or on behalf of the Trust:

        Provided that the Management Company or the Trustee may, without creating any liability on
their part, record in their books and comply with such directions of the holders of Units for the
distribution of income as they think fit.

       8. Act XVIII of 1891 to apply.—The provisions of the Bankers Books Evidence Act, 1891
(XVIII of 1891), shall apply to the books of the Trust as if it were a bank as defined in section 2 of
the Act.

       9. Power to make rules.—The 1[Federal Government] may, by notification in the official
Gazette, make rules to provide for all matters for which provision is necessary for the purpose of
giving effect to the provisions of this Ordinance.



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                                                                                RGN Uploaded Date: 27.03.2024
       1
           Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.


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Source: Pakistan Code, Ministry of Law and Justice (pakistancode.gov.pk). Text on this page is reproduced verbatim from the official PDF and is provided for reference only. For the authoritative version, always consult the source document or a current reported edition.