1. Investments in shares, debentures and mutual funds can be made by a government servant. However "frequent buying and selling" of these are considered as "speculation" and is banned. Furthermore, investment in shares, mutual funds etc are to be intimated to the Department at the end of every calendar year as per the ref.: DoPT OM No. 11013/6/91-Estt. (A) dated 8.4.92 regarding CCS [Conduct] Rules, 1964
2. Sub-rule (1) of the Rule 16 also provides that no government servant shall speculate in any stock, share or other investment. It has also been explained that 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.
3. With a view to enable the administrative authorities to keep a watch over such transactions, it has been decided by the govt that an intimation may be sent in the enclosed Proforma to the prescribed authority in the following cases:
(a). Group ‘A’ & ‘B’ Officers:– If the total transactions in shares, securities, debentures or mutual funds scheme etc. exceeds Rs. 50000/- during the calendar year.
(b) Group ‘C’ & ‘D’ Officers:– If the total transactions in shares, securities, debentures or mutual funds scheme etc. exceeds Rs. 25000/- during the calendar year.
4. It is clarified that since shares, securities, debentures etc. are treated as movable property for the purpose of Rule 18 (3) of the CCS [Conduct] Rules, 1964 if an individual transaction exceeds the amount prescribed in Rule 18(3), the intimation to the prescribed authority would still be necessary. The intimation prescribed in para 3 will be in addition to this, where cumulative transaction[s] i.e. sale, purchase or both in shares, securities, debentures or mutual funds etc. in a year exceed the limits indicated in para 3.