24F-2NT

                U.S. SECURITIES AND EXCHANGE COMMISSION
                         Washington, DC 20549

                              FORM 24F-2
                   Annual Notice of Securities Sold
                        Pursuant to Rule 24f-2

                                Read instructions at end of Form
before preparing Form.
                         Please print or type.


1.       Name and address of issuer:
                                 Federated Municipal Securities Fund, Inc.
                                            Federated Investors
                                         Federated Investors Tower
                                    Pittsburgh, Pennsylvania 15222-3779

2.       Name of each series or class of funds for which this notice is filed:


3.       Investment Company Act File Number:       811-2677
         Securities Act File
               Number:                              2-57181
4.       Last day of fiscal year for which this notice is filed:  March 31,1997


5.       Check box if this notice is being filed more than 180 days
         after the close of the issuer's fiscal year for purposes of
         reporting securities sold after the close of the fiscal year
         but before termination of the issuer's 24f-2 declaration:
                                                                     [   ]



6.       Date of termination of issuer's declaration under rule 24f-2(a)(1),
         if applicable:



7.       Number and amount of securities of the same class or series
         which had been registered under the Securities Act of 1933
         other than pursuant to rule 24f-2 in a prior fiscal year, but
         which remained unsold at the beginning of the fiscal year:

                                                              0:$0

     8. Number and amount of securities registered during the fiscal
year other than pursuant to rule 24f-2: 196,136:$2,194,762


9. Number and aggregate sale price of securities sold during the
fiscal year (includes DRIP shares): 18,229,606:$193,883,062













     10. Number and aggregate sale price of securities sold during the
         fiscal year in reliance upon registration pursuant to rule 24f-2:
               18,033,470:$191,688,300

11. Number and aggregate sale price of securities issued during the
fiscal year in connection with dividend reinvestment plans, if
applicable:


12.   Calculation of registration fees:

(i)   Aggregate sale price of securities sold during the fiscal
      year in reliance on rule 24f-2 (from Item 10):             $ 191,688,300
                                                             
(ii)  Aggregate price of shares issued in connection with
      dividend reimbursement plans
      (from Item 11, if applicable)                          +
(iii) Aggregate price of shares redeemed or repurchased
      during the fiscal year (if applicable)                 -     191,688,300
                                                             
(iv)  Aggregate price of shares redeemed or repurchased
      and previously applied as a reduction to filing fees
      pursuant to rule 24e-2 (if applicable)                 +
(v)   Net aggregate price of securities sold and issued
      during the fiscal year in reliance on rule 24f-2
      [line (i), plus line (ii), less line (iii), plus
      line (iv)] (if applicable):
      $                             0
      -------------------------------
(vi)  Multiplier prescribed by Section 6(b) of the Securities
      Act of 1933 or other applicable law or regulation
      (see Instruction C.6):                                         x
      1/3300
(vii) Fee due [line (i) or line (v) multiplied by line (vi)]:
      $                             0
      -------------------------------


Instruction:      Issuers should complete lines (ii), (iii), (iv), and (v) only
                  if the form in being filed within 60 days after the close of
                  the issuer's fiscal year.  See Instruction C.3.

13.      Check box if fees are being remitted to the Commission's
         lockbox depository as described in section 3a of the
         Commission's Rules of Informal and Other Procedures (17 CFR
         202.3a).
                                                                      [  ]

         Date of mailing or wire transfer of filing fees to the
Commission's lockbox depository:


                           SIGNATURES

This report has been signed below by the following persons on behalf
of the issuer and in the capacities and on the dates indicated.

By (Signature and Title)*           /s/ S. Elliott Cohan
                                    S. Elliott Cohan
                                    Assistant Secretary

Date:                               May 15, 1997

Please print the name and title of the signing officer below the signature.

EX-99.OPNLETTER

      FEDERATED ADMINISTRATIVE
                         SERVICES

                                                    FEDERATED INVESTORS TOWER
                                                    PITTSBURGH, PA 15222-3779
                                                    412-288-1900





                                                          May 15, 1997


Federated Municipal Securities Fund, Inc.
Federated Investors Tower
Pittsburgh, PA  15222-3779

Gentlemen:

         You have requested my opinion for use in conjunction with a
Rule 24f-2 Notice for Federated Municipal Securities Fund, Inc.
("Corporation") to be filed in respect of shares of the Corporation
("Shares") sold for the fiscal year ended March 31, 1997, pursuant to
the Corporation's registration statement filed with the Securities and
Exchange Commission ("SEC") under the Securities Act of 1933 (File No.
2-57181) ("Registration Statement").

         In its Registration Statement, the Corporation elected to
register an indefinite number of shares pursuant to the provisions of
Investment Company Act Rule 24f-2.

         As counsel I have participated in the preparation and filing
of the Corporation's amended Registration Statement under the
Securities Act of 1933. Further, I have examined and am familiar with
the provisions of the Articles of Incorporation dated September 10,
1976, the Bylaws of the Corporation and such other documents and
records deemed relevant. I have also reviewed questions of law and
consulted with counsel thereon as deemed necessary or appropriate by
me for the purposes of this opinion.

         On the basis of the foregoing, it is my opinion the Shares
sold for the fiscal year ended March 31, 1997, registration of which
the Rule 24f-2 Notice makes definite in number, were legally issued,
fully paid and non-assessable by the Corporation.

         I hereby consent to the filing of this opinion as an exhibit
to the Rule 24f-2 Notice referred to above, the Registration Statement
of the Corporation and to any application or registration statement
filed under the securities laws of any of the States of the United
States.

         The foregoing opinion is limited to the Federal laws of the
United States and the laws of the State of Maryland, and I am
expressing no opinion as to the effect of the laws of any other
jurisdiction.


                                   Very truly yours,

                                   /s/ S. Elliott Cohan
                                   S. Elliott Cohan
                                   Fund Attorney