The Indian government has ordered members of the Indian Administrative Service (IAS), Indian Police Service (IPS), and Indian Forest Service (IFS) to inform the government if their total transactions in stock, shares, or other investments exceed their six months' basic pay in a calendar year. This new regulation is in addition to the existing Rule 16(4) of the All India Services (Conduct) Rules, 1968, which requires officers to share similar information.
Reasoning behind the new regulation
The purpose of this new rule is to enable the administrative authorities to keep a close watch on the transactions in any stock, share, or other investments made by members of the All India Services (AIS).
Details of the regulation
As per Rule 14(1) of the conduct rules, no member of the service is allowed to speculate in any stock, share, or other investments, except for occasional investments made through licensed stock-brokers or other authorized persons under the relevant law. Frequent purchase or sale of shares, securities, or other investments is considered speculation.
The order dated March 20, 2023, further clarifies that shares, securities, debentures, etc., are treated as movable property under Rule 16 of AIS (Conduct) Rules, 1968. If an individual transaction exceeds two months' basic pay of the member of service, intimation to the prescribed authority is necessary.
Rule 16(4) requires every member of the service to inform the government of each transaction with a value exceeding two months' basic pay of the member of service within one month of completion.