According to the latest order from the Ministry of Personnel, the Centre has asked IAS, IPS and IFS officers to inform it if the total volume of transactions in stocks, shares or other investments exceeds their six-month basic salary in a calendar year.
This reminder is in addition to similar information they must share under AIS Rule 16(4) or the All India Services (Conduct) Rules, 1968.
These rules apply to members of the three All India Services, Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFS).
“To enable the Administration to supervise dealings in any shares, shares or other investments, etc., of members of the All India Service (AIS), it has been decided that the Transactions exceeding six months’ basic salary of government civil servants are subject to prescribed authority every year,” said the order sent to the secretaries of ministries and commissions of the central government.
It refers to Rule 14 (1) of the conduct rules, which states that “no member of the service may speculate in any stock, stock or other investment, except that this provision does not apply to casual investments through a stockbroker or other person duly authorised under applicable law”.
The rule further explains that frequent buying or selling of stocks, securities or other investments is considered speculative under this subrule.
The ministry, in its order dated March 20, further said that since shares, securities, debentures etc., are deemed to be movable property as per explanation-1 under Rule 16 of the AIS (Conduct) Rules, 1968, if an individual transaction is more than two months becomes more than the basic pay of a member of the Service as prescribed in rule 16(4) of the said rules, “intimation to the prescribed authority shall still be necessary”.
Rule 16 (4), states: “Each transaction whose value exceeds two months’ basic salary of the service member, each service member shall notify the government within one month of the transaction completion”.