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Use of Foreign Contributions For Speculative Investments

"I am running an NGO. Can we use the foreign contributions for investment in Mutual Funds and other speculative investments?"


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Team Legistify

No. Speculative activities have been defined in Rule 4 of FCRR – 2011 as under:-

  • any activity or investment that has an element of risk of appreciation or depreciation of the original investment, linked to marked forces, including investment in mutual funds or in shares,
  • participation in any scheme that promises high returns like investment in chits or land or similar assets not directly linked to the declared aims and objectives of the organization or association.

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