Chhattisgarh govt employees now allowed to invest in shares, MFs; intraday trading remains prohibited

The Chhattisgarh government has allowed its employees to invest in shares, securities, debentures and mutual funds, a PTI report said, citing a public relations department official.

However, investment activities like intraday trading, BTST, Futures and Options (F&O) and cryptocurrency remain prohibited, the official added.

Central Civil Services (Conduct) Rules

There are certain rules and regulations for government employees that prevent them from engaging in specific activities.

Under Rule 16 of Central Civil Services (Conduct) Rules, 1964, Chhattisgarh government employees can’t invest (speculate) in stocks, shares and similar securities. Further, ‘frequent purchases and sales’, like day trading, are not allowed as they are considered speculative. Only long-term investments through licensed brokers, that too, occasionally, are allowed.

If the total transactions (buying/selling) in a calendar year go over an employee’s six months’ basic pay, they must submit a prescribed intimation format to the designated authority by January 31 of the following year, as per an office memorandum by the central government issued in 2019.

Additionally, any transaction above an employee’s two months’ basic pay also requires intimation within one month. There are many other rules, including derivatives, short-selling, etc.

Change in rules by the Chhattisgarh government

On June 30, the state's General Administration Department on June 30 issued a notification pertaining to amendments to the Chhattisgarh Civil Services (Conduct) Rules, 1965, which stated that the government servants of Chhattisgarh are now allowed to invest in shares, securities, debentures and mutual funds, the official said to PTI.

The amendment has come into force by adding a new sub-section in Rule 19, which aims to ensure transparency in financial transactions, the official added.

The notification clearly states that frequent purchase and sale of shares, securities or other investments (trading/investment in Intraday, BTST, Future and option (F&O) cryptocurrency) shall be treated as misconduct, he said, the PTI report noted.