Is trading in shares allowed for central government employees ?


#1

I hold shares of approximately 1 lakh rupees. I am about to join a central government job soon.
Will it create a problem if I continue to hold these shares for long term ?
Please provide details.


#2

Hey @Harsh_Gupta

Check out this support article!


#3

So does this basically mean govt. employees cannot trade in the share market?


#4

Hey @Gautam

You can make investments. But specualtion is not allowed


#5

What does speculation mean? F&O or intraday trading?
Does this apply on state govt employees also?


#6

Yes, Derivative trading and intraday trading will be considered speculative.

These rules are stated in THE CCS (CONDUCT) RULES, 1964. I am assuming that this will be applicable to state government employees as well because the intent of these rules is to ensure there is no conflict of interest.


#7

Thanks for reply

Who/where to should I contact to confirm it?


#8

Best to confirm with your employer. Contact the local representative of ESTD.


#9

A random query…
Do MPs or MLAs are barred from speculative tradings, as they are involved in policy making and decision taking too


#10

I think that there is an issue with government people that they are able easily to get sensitive information about some companies. In this way it gives them advantage in respect to all other traders on the market. This is why longer term investments might be allowed but simple trading not


#11

just open an account in name of someone from your family . if u want to trade F&O or intraday .
Long term Investment is not an issue for u


#12

I am a postal employee i already did invest in intraday several times without being aware of this rule. What do I do?


#13

Maybe, send them a resignation letter this week, before they catch you. Once you are not an employee, they cant do anything, can they ?


#14

Is it that serious?


#15

Dont worry about all this. The postal dept cannot deliver our letters on time, by the time they figure about your intraday trading ( happened by ignorance ) you will be long past retirement.

You did not know about this rule , did you ? So you have a valid explanation, just in case.

Since you know it now, better not to commit the same mistake twice. Good Luck.


#16

Thanks. Just wanted to know how I could set things right without it effecting my job. Got worried for a while when you said resign.


#17

Nothing to worry. with in one year of joining they will ask you the complete details of insurance, cash, mutual fund, movable & immovable property. you just provide the details in and relaxe. Normally it is advisable to give show more gold than the actually you possses. after joining the services if you want to purchase any movable or immovable property then you can do that but you have to take prior permission and have to tell the source of fund for this transaction. You can keep these share as you wish but you have to show these in details provided to department .