UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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.    The name of each series or class of securities for which this Form is
      filed (If the Form is being filed for all series and classes of securities
      of the issuer, check the box but do not list series or classes): [ ]



3.    Investment Company Act File Number:                 811-2677


      Securities Act File Number:     2-57181





4(a). Last day of fiscal year for which this Form is filed:     March 31, 1998



4(b).[ ] Check  box if  this  Form is  being  filed  late  (i.e.,  more  than 90
     calendar days after the end of the issuer's fiscal year).  (See Instruction
     A.2)

Note:If the Form is being filed late,  interest must be paid on the registration
     fee due.




4(c). [ ] Check box if this is the last time the issuer will be filing this
Form.






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5. Calculation of registration fee:

      (i)   Aggregate sale price of securities sold during
            the fiscal year pursuant to section 24(f):     $131,008,560

      (ii)  Aggregate price of securities redeemed or repurchased during the
            fiscal year:$189,127,337

      (iii) Aggregate price of securities redeemed or repurchased during any
            prior fiscal year ending no earlier than October 11, 1995 that were
            not previously used to reduce registration fees payable to the
            Commission:$ 0

      (iv)  Total available redemption credits [add Items 5(ii)
            and 5(iii)]:                                 --$189,127,337

      (v)   Net sales -- if Item 5(i) is greater than Item 5(iv) [subtract Item
            5(iv) from Item 5(i)]: $ 0

      (vi)  Redemption credits available for use in future years -- if Item 5(i)
            is less than Item 5(iv) [subtract Item 5(iv) from Item 5(i)]:
            $(58,118,777)

      (vii) Multiplier for determining registration fee
            (See Instruction C.9):                        x    0.000295

      (viii)           Registration fee due [multiply Item 5(v) by Item
            5(vii)] (enter "0" if no fee is due):=$                     0
6.    Prepaid Shares

      If the response to item 5(i) was determined by deducting an amount of
      securities that were registered under the Securities Act of 1933 pursuant
      to rule 24e-2 as in effect before [effective date of rescisison of rule
      24e-2], then report the amount of securities (number of shares or other
      units) deducted here: 2,038,439. If there is a number of shares or other
      units that were registered pursuant to rule 24e-2 remaining unsold at the
      end of the fiscal year for which this form is filed that are available for
      use by the issuer in future fiscal years, then state that number here:
      -0-.
7.    Interest due -- if this Form is being filed more than 90 days after the 
      end of the issuer's fiscal year (see Instruction D):
      +$------------
8.    Total of the amount of the registration fee due plus any interest due
      [line 5(viii) plus line 7]: =$ -0-

9.    Date the registration fee and any interest payment was sent to the
      Commission's lockbox depository: Method of Delivery:
            [   ] Wire Transfer
            [   ] Mail or other means




<PAGE>



                                   SIGNATURES


This Form 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)*                                            CW


                         S. Elliott Cohan         Assistant Secretary


Date:      June 10, 1998.


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