New Delhi, July 27 -- The Charity Commissioner of Maharashtra's latest order could unlock capital inflows worth thousands of crores of rupees into mutual funds, while potentially setting a nationwide precedent for public trusts.

The state government body, established to oversee public trusts including charitable endowments, on 21 July issued a notice stating that trustees of public trusts in Maharashtra could invest up to 50% of the trust's total money in mutual funds and exchange-traded funds (ETFs), along with other specific investment options.

The key change: trustees of public charitable trusts will no longer need to seek approval from the Charity Commissioner's office for such investments. The decision of where to invest now rests ...