7th Pay Commission: New rules have come for government employees to invest in the stock market. Government servants in the All India Services (AIS) are not permitted to speculate repeatedly in the purchase or sale of shares, securities or other investments. However, they are permitted to invest occasionally in shares through registered stock brokers or other persons under certain laws.
Rules changed for government employees to invest in stock market
The Department of Personnel and Training (DoPT), in a recent circular, said that members of AIS will have to furnish details of their investments in stocks or shares to the prescribed authority. There is a rule that if there is an investment of more than six months’ basic salary during a calendar year, then it has to be informed.
You can invest in share market as easily as 6 months basic salary
This information will have to be given by January 31 of the next year. This means AIS members can invest less than their six months’ basic salary in the stock market without informing the authority. The salary paid to the members of AIS is based on the recommendations of the Seventh Pay Commission.
These will be the new rules
In terms of Rule (14(1)) of the AIS (Conduct) Rules 1968 to enable the Administrative Officers to monitor transactions in any stock, share or other investment etc. in respect of all Members. Matters of the India Services (AI) It has been decided that the total transactions in stocks, shares or other investments etc. exceeding six months basic pay of a Government servant shall be reported in a prescribed proforma once a year. Will be
Information to be given under these rules
AIS member will also have to inform the authority in case the investment is more than 2 months basic salary. The DoPT also stated in the notification that it is also clarified that since shares, securities, debentures etc. are deemed to be movable property as per Explanation-I under rule 16 of the AIS (Conduct) Rules, 1968, if A person’s transaction is more than two months’ basic salary.
