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Statement 1
Surplus fund can only be invested in specified types of investment e.g. no equity shares.Statement 2
One of legal restrictions is public money (taxpayer) is invested by public sector (central or local government).What is meant by these statement sir?
Central and local government (the public sector) have to avoid risky investments. They are looking after public money (from taxes) must not speculate with that.
Equity shares on stock exchanges are easy to buy and sell but, as you will know, they can go down as well as up, so are regarded as too risky for the investment of public funds.
Sir I got first statement but still unclear about second statement. Can you explain it again?
Please check that you typed it out accurately. Doesn’t seem quite right.
Investment by organisation can be restricted by law on certain special cases:
When public money (tax payer) is invested by public sectors (central or local government).These are the lines sir.
Public money is raused from taxpayers by central and local government and laws govern how it can be invested (so as to keeo it safe).
Also, relating to Statement 1, other organisations might establish their own investment rules.
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