You can check this link, http://www.lawyersclubindia.com/forum/Equity-market-for-govt-employee-73193.asp#.VJCGuS4YMkN
The CCS (Conduct) Rules,1964 says , "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 stock brokers or other persons duly authorised 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."
So I don’t get what is frequent purchase or sale or both to be speculation? Is commodity trading within a day or one to day after comes under this since commodity derivative transactions are no longer to be treated as speculative transactions as per one of the amendments carried out by the 2013 budget was the introduction of commodities turnover tax (CTT), effective 1 July, 2013 (Source : http://www.livemint.com/Money/F49uFpSmVccTsb5mvy5OoJ/Commodities-trading-no-longer-speculative.html)?
Another clause i.e. Sub-rule 3 of Rule 18 of CCS(Conduct) Rules,1964 (32) 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.
In this case I have found a Gazette Notification in respect of amendment of Sub-rule 3 of Rule 18 of CCS(Conduct) Rules,1964 and you may find it in the following link:
Actually I have not find any quality answer from my office and before going deep into it I just want to get clarified. SO does it mean if I just (I) inform my authority regarding my opening of trading account and (II) as per the amendment intimate the transaction amount if the particular transaction exceeds my two months basic pay, then it will work!
Please suggest me and let me know if you found any better clarification for me.