The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of their basic pay, according to an order issued by the Personnel Ministry.
According to the earlier rules, Group ”A” and ”B” officers were required to disclose such details if the total transaction in shares, securities, debentures or mutual fund schemes etc. exceeded Rs. 50,000 during a calendar year. The limit was Rs. 25,000 for Group ”C” and ”D” officers.
The government has now decided that all government employees need to send an intimation if total transactions in shares, securities, debentures, mutual funds schemes and the likes exceed six months’ basic pay during a calendar year, the ministry said in the order issued to secretaries of all central government departments on Thursday.
“With a view to enable the administrative authorities to keep a watch over such transaction”, the government has also come out with a pro forma for the employees to share these details.
These details need to be submitted by January 31 of the subsequent calendar year in the pro forma, it said.
Service rules say no government servant shall speculate in any stock, share or other investment.
It has also been explained in the service rules that frequent purchase or sale or both, of share, securities or others investments shall be deemed to be speculation.
“But, the occasional investments made through stock brokers or other persons duly authorized and licensed or who have obtained a certificate of registration under the relevant laws is allowed in this rule,” the Personnel Ministry said.
The move to revise the monetary limit may have been necessitated after government employees’ salary hike following the recommendation of seventh central pay commission, officials said.
The latest disclosure will be in addition to the one already needed to be filled by the employees under the Central Civil Services or CCS (Conduct) Rules, 1964, the government clarified.
“It is also clarified that since shares, securities, debentures, etc. are treated as movable property for the purpose of rule 18(3) of CCS(Conduct) Rules, 1964, if an individual transaction exceeds the amount prescribed in it, the intimation to the prescribed authority would still be necessary,” the directive said.
According to the rules, government servants need to report any transaction in respect of movable property either in their own name or in the name of a member of their family if the value of the property exceeds two months’ basic pay.
This needs to be done within one month from the date of the transaction.