The Indian Ministry of Personal Public Grievances & Pensions has issued a directive to all Chief Secretaries of States/Union Territories regarding the reporting of transactions in sales and purchases of shares, securities, debentures, etc. by members of All India Services (AIS). The directive refers to Rule 14(1) of AIS (Conduct) Rules, 1968, which prohibits AIS members from speculating in any stock, share, or other investments, except for occasional investments made through licensed stockbrokers or authorized persons. The directive requires an annual intimation to the prescribed authority in the enclosed Proforma if the total transactions in stock, share or other investments exceed six months’ basic pay of the government servant during a calendar year, to be submitted by 31st January of the subsequent year.
Limit for intimation in respect of transactions in sale and purchase of-share, securities, debentures etc
F.No 11017/01/2016-AIS-II
Governments of India
Ministry of Personal Public Grievances & Pensions
Department of personnel & Training
New Delhi dated the 20th March, 2023
To
The Chief Secretaries of all the States/UTs
Subject- Limit for intimation in respect of transactions in sale and purchase of-share, securities, debentures etc.-reg.
Sir/Madam,
I am directed to refer to Rule 14(1) of AIS (Conduct) Rules, 1968 which provides as under –
14(1) No member of the Service shall speculate in any stock, share or other investments but this provision will not apply to occasional investment made through Stock-brokers or other persons duly authorised on license under the relevant law.
Explanation.-Frequent Purchase or sale or both of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule.
- In the light of Rule 14(1) of AIS (Conduct) Rules, 1968, with a view to enable the administrative authorities to keep a watch over the transactions in any stock, share or other investments etc. in respect of members of All India Services (AIS), it has been decided that an intimation may be sent in the enclosed Proforma to the prescribed authority every year, if the total transactions in stock, share or other investments etc. exceed six months’ basic pay of Government servant during a calendar year (to be submitted by 31st January of subsequent year).
- It is also clarified that since share, securities, debentures, etc are treated as moveable property as per explanation-] under rule 16 of AIS (Conduct) Rules, 1968, if an individual transaction exceeds two months’ basic pay of the member of service as prescribed in Rule 16(4) of ibid rules, intimation to the prescribed authority would still be necessary. The intimation as envisaged in para 2 above will be in addition to the said intimation under Rules 16(4) of AlS(Conduct) Rules, 1968.
- Accordingly, in exercise of the power conferred under Rules 16(5) of AIS (Conduct) Rules, 1968, aforesaid instructions are issued herewith with the approval of competent authority.
- These instructions-may, please be brought to the notice of all the members of All India servises
Yours faithfully,
(Ram Lakhan)
Secretary to the Government of India
Tele: 011-23093479
Source: dopt.gov.in