Transactions in sale and purchase of shares and debentures etc

32) Transactions in sale and purchase of shares and debentures etc.

The provisions of sub-rule (4) of Rule 18 of the CCS (Conduct) Rules, 1964 provides that the Government or the prescribed authority may, at any time, by general or special order, require a Government servant to furnish within a period specified in the order, a full and complete statement of such movable or immovable property held or acquired by him or on his behalf or by any member of his family as may be specified in the order. Such statement shall, if so required by the Government or by prescribed authority, include the details of the means by which or the source from which, such property was acquired.

2. Sub-rule (1) of 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. It has been brought to the notice of the Government that a number of employees are investing in shares, securities and debentures etc. frequently. With a view to enable the administrative authorities to keep a watch over such transactionS, it has been decided that an intimation may be sent in the enclosed proforma to the prescribed authority in the following cases :-

(i) Group ‘A’ and ‘B’ Officers – If the total transaction in shares, securities, debentures or mutual funds scheme etc. exceeds Rs. 50,000/- during the calendar year.

(ii) Group ‘C’ & ‘D’ Officers – If the total transactions in shares, securities, debentures or mutual funds scheme etc. exceeds Rs. 25,000/- 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.

Form for giving intimation under Rule 18 (4) of CCS (Conduct) Rules, 1964 for transactions in shares, securities, debentures and investment to mutual fund schemes etc.

1. Name and designation.

2. Scale of pay and present pay

3. Details of each transaction made in shares securities, debentures, mutual funds scheme etc. during the calender year.

4. Particulars of the party/firm with whom transaction is made :-

(a) Is the party related to the applicant?

(b) Did the applicant have any dealings with the party in his official capacity at any time or is the applicant likely to have any dealings with him in the near future.

5. Source or sources from which financed :-

(a) Personal savings.

(b) Other sources giving details

6. Any other relevant fact which applicant may like to mention.

Declaration :-

I hereby declare that the particulars given above are true.

Signature

Station :

Designation

Date :

[DOPT OM No. 11013/6/91-Estt.(A), dated 08.04.1992]