Government employees in the All India Services (AIS) are not allowed to frequently speculate in the purchase or sale of shares, securities or other investments. However, they are allowed to make occasional investments in shares through stock brokers or other persons duly authorised under relevant laws.
In a recent circular, the Department of Personnel and Training (DoPT) said that members of the AIS should intimate the prescribed authority about the details of their investment in stocks or shares if it exceeds six months’ basic pay during a calendar year. The details need to be submitted by 31st January of the subsequent year. This means, AIS members can invest any amount less than his/her six months basic pay without informing the authority.
The salaries provided to members of AIS are based on the recommendations of the 7th Pay commission.
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“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 transactions in any stock, share or other investments etc. in respect of members of All India Services (AI), 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),” the DoPT said in the circular dated 20th March 2023.
The AIS member will have to intimate the authority also in the case where an individual transaction exceeds two months’ basic pay.
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“It is also clarified that since share, securities, debentures, etc are treated as moveable property as per explanation-I under rule 16 of AIS (Conduct) Rules, 1968, if an individuals transaction exceeds two months’ basic pay of the member of services as prescribed in Rule 16 (4) of ibid rules, intimation to the prescribed authority would still be necessary,” the DoPT said.