Investment in mutual fund

Dear All,

Please suggest me for below given query.

1) whether section 372A is applicable for making invesment in mutual fund?

2) Section 372A speaks about investment in securities of any other body corporate. However definition of Securities as defined in securities contract (Regulation) Act, includes units or any other insturment issued to the investors under any mutual fund scheme.

Investment made in the unit of mutual fund (which generally speaking, are set up as Trust Bodies) though covered in the definition of Securities fall outside the ambit of Sec. 372A because same are not issued  by the bodies corporate as defined in the Sec.2(7). However mutual fund issued by the body corporate falls within the ambit of Sec. 372A.

Now the Board has power under section 292(1)(d) of the companies act, 1956 to make the investment of Company's Fund. However the resolution shall specify the total amout up to which the fumd may be invested and nature of the investment. As Blanket permission is not allowed.

Now my quetion is if section 372A is not applicable for investment in mutual fund then can Board decide limit of investment above 100%  of Free reserves of the Company?

Please guide me.