Sunday, June 27, 2021

Can Govt Employee Invest in Share Market? | Intraday FnO Trading ?

 Can Govt Employee Invest in Share Market? | Intraday FnO Trading ?

finvestonline.com



Can govt employee invest in share market ?
There is no absolute ban on investing in stocks however speculative trading (may include derivative trading) is not allowed. Also, it depends on the rules and regulations of the Organization.



What  CCS (Central Civil Services) conduct rules 1964 says.

As per CCS (Central Civil Services) conduct rules 1964, investments in shares, debentures and mutual funds can be made by the Government servant. However "frequent buying and selling" of these are considered as "speculation" and is banned. Also for transactions above certain value, the government officers have to inform prescribed authorities.


Next Potential Multibagger | Stock Price Analysis & Outlook



This information given below is as per the Central Civil Services (Conduct) Rules, 1964. 


 35(1) No Government servant shall speculate in any stock, share or other investment: Provided that nothing in this sub-rule shall apply to occasional investments made through stockbrokers or other persons duly authorized and licensed or who have obtained a certificate of registration 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.

40(2) (i) No Government servant shall make, or permit any member of his family or any person acting on his behalf to make, any investment which is likely to embarrass or influence him in the discharge of his official duties. For this purpose, any purchase of shares out of the quotas reserved for Directors of Companies or their friends and associates shall be deemed to be an investment which is likely to embarrass the Government servant.

(ii) No Government servant who is involved in the decision-making process of fixation of price of an Initial Public Offering or Follow-up Public Offering of shares of a Central Public Sector Enterprise shall apply, either himself or through any member of his family or through any other person acting on his behalf, for allotment of shares in the Initial Public Offerings or Follow-up Public Offerings of such Central Public Sector Enterprise.

(3) If any question arises whether any transaction is of the nature referred to in sub-rule (1) or sub-rule(2), the decision of the Government thereon shall be final.

(4) (i) No Government servant shall, save in the ordinary course of business with a bank or a public limited company, either himself or through any member of his family or any other person acting on his behalf, (a) lend or borrow or deposit money, as a principal or an agent to, or from or with, any person or firm or private limited company within the local limits of his authority or with whom he is likely to have official dealings or otherwise place himself under any pecuniary obligation to such person or firm or private limited company; or (b) lend money to any person at interest or in a manner whereby return in money or in kind is charged or paid; Provided that a Government servant may, give to, or accept from a relative or a personal friend, a purely temporary loan of a small amount free of interest, or operate a credit account with a bona fide tradesman or make an advance of pay to his private employee; Provided further that nothing in this sub-rule shall apply in respect of any transaction entered into by a Government servant with the previous sanction of the Government.

(ii) When a Government servant is appointed or transferred to a post of such nature as would involve him in the breach of the provisions of sub-rule (2) or sub-rule (4), he shall forthwith report the circumstances to the prescribed authority and shall thereafter act in accordance with such order as may be made by such authority.


Frequent Q&A

finvestonline.com


RAMASTEEL | Stock Analysis And Price Outlook


Can a govt employee invest in mutual funds?
 Yes, He/She can invest in Mutual funds.


Can bank employee invest in share market?
Yes, He/She can invest in the Share market.


Whether a govt employee can do share trading?
No, Govt. Employees cannot do intraday trading. However, He can invest in Mutual funds without any issue.


Can govt employee spouses do intraday trading?
There is no such ban on it. However, If it is related to an employee's work in any way then it is not allowed.


Can a govt employee do intraday trading?
No, It's not allowed as per the rule book of civil services.


Can a Government Employee apply for the IPO? 
Yes, You can apply for the IPO. However, you must not be part of the price fixing process of the same company. According to the rule 40(ii) no Government employee engaged in the price determination phase for a Central Public Sector Entity’s Initial Public Offering or Follow-up Public Offering of stocks shall request for allotment of stocks in the Initial Public Offerings or Follow-up Public Offerings of a Government Business Enterprise, either personally or through any individual of his relatives or any other individual acting on his behalf.


THEMISMED | Potential Outperformer


Government employees allowed to acquire stake from promoters?
The answer is no, government employees are not allowed to acquire stakes from promoters. As per rule 40(i) No government employee can make, or authorize a member of his relatives or someone acting on his behalf to consider, any investment that could inconvenience or impact him in the performance of his official tasks.


Can a Government employee is allow to do intraday trading?
The answer is no you are not allowed to do intraday trading as per rule no. 35(1) which says no government employee shall trade in any stock, share, or similar investment, except for periodic investments done by stockbrokers or other individuals properly permitted and certified or who have received a certificate of certification under the applicable law.



Conclusion

There is no absolute ban on investing in stocks however speculative trading (may include derivative trading) is not allowed. Also, it depends on the rules and regulations of the Organization.



CIGNITITEC | Stock Analysis And Price Outlook



Thanks for your Precious Time.


Finvest Online
Telegram  :  https://t.me/finvestonlineChat






Disclaimer- The information on this blog are based on my personal opinion and experience, it should not be considered professional financial investment advice and in no way it should be considered as a tip. We does not take any compensation of any kind whatsoever from any reader,user and company that are mention on this website.  Please remember that this is a blog, and you do not need to agree with anything I write.We are not SEBI registered financial advisor or analyst.




can state government employee invest in share market
can government employee invest in share market in hindi
can govt employee spouse do intraday trading
can govt employee invest in share market? 
whether a govt employee can do share trading
can government employee open demat account
can govt employee do intraday trading
can psu employee invest in share market

No comments:

Post a Comment