State Financial Corporations Act, 1951
6. Shares to be guaranteed by the State Government and to be trust or approved securities
(1) The Shares of the Financial Corporation shall be guaranteed by the State Government as to the repayment of principal and the payment of annual dividend at such minimum rate as the State Government may, with the approval of the Central Government, fix by notification published in the Official Gazette at the time of issuing the shares.
(2) Notwithstanding anything contained in the Acts hereinafter mentioned in this sub-section, 2[the shares of the Financial Corporation, and such of the bonds and debentures issued by it as are guaranteed by the State Government as to the repayment of the principal and payment of interest, and receipts issued by it for such of deposits as are guaranteed by the State Government as to the repayment of the principal and payment of interest shall] be deemed to be included among the securities enumerated in section 20 of the Indian Trust Act, 1882 (2 of 1882) and also to be approved securities for the purposes of the Insurance Act, 1938 (4 of 1938) and the 7[Banking Regulation Act, 1949 (10 of 1949)].