Maharashtra Allows Temples and Charitable Trusts to Invest in Stock Market: Up to 50% Funds Permitted in Equities and Mutual Funds
Mumbai, July 29, 2025: In a landmark reform, the Maharashtra government has granted approval for public religious and charitable trusts to invest up to 50% of their total funds in equity and mutual funds, marking a shift from traditional, conservative investment avenues like fixed deposits and post office schemes. The new guidelines came into effect from July 21, 2025, and are expected to modernize the financial strategy of thousands of registered trusts in the state.
This progressive move allows renowned temples and charitable organizations to become active participants in India’s financial markets, diversifying their investment portfolios while ensuring responsible fund management.
Expanded Investment Options for Trusts
According to the directive issued by the Charity Commissioner of Maharashtra, trusts can now invest in:
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Equity mutual funds with a minimum of 65% allocation to equities
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SEBI-regulated debt mutual funds
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Exchange-Traded Funds (ETFs) tracking major indices like BSE Sensex and NSE Nifty
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Government and corporate bonds with a minimum maturity of three years
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Equity shares of companies with a market capitalization of ₹5,000 crore or more
Strict Guidelines to Ensure Risk Management
Investments must strictly adhere to the framework laid out in the guidelines, which emphasize prudent risk management. Eligible securities must hold at least ‘AA’ credit ratings from two SEBI-registered credit rating agencies. Where multiple ratings are available, the two lowest shall be considered.
This approach ensures that trusts can seek higher returns while mitigating exposure to financial risk.
Billions Expected to Enter Capital Markets
There are over 59,000 registered public trusts in Maharashtra, according to the Charity Commissioner’s office. While official data on their collective corpus is unavailable, market experts estimate these organizations manage thousands of crores. Analysts believe this policy reform could result in ₹5,000 to ₹10,000 crore of new investments in equities and mutual funds over time—providing a fresh influx into India’s capital markets.
