CCS CONDUCT RULES 16 &17

16. Investment, lending and borrowing

35(1) 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.

 

40(2) (i) No Government servant shall make, or permit any member of his family or any
 person acting on his behalf to make, any investment which is likely to embarrass or influence 
him in the discharge of his official duties. For this purpose, any purchase of shares out of the quotas reserved for Directors of Companies or their friends and associates shall be deemed to be an investment which is likely to embarrass the Government servant.

 

(ii) No Government servant who is involved in the decision making process of fixation

of price of an Initial Public Offering or Follow-up Public Offering of shares of a Central

Public Sector Enterprise shall apply, either himself or through any member of his family or

through any other person acting on his behalf, for allotment of shares in the Initial Public

Offerings or Follow-up Public Offerings of such Central Public Sector Enterprise.

(3) If any question arises whether any transaction is of the nature referred to in sub-rule (1) or

sub-rule(2), the decision of the Government thereon shall be final.

9(4) (i) No Government servant shall, save in the ordinary course of business with a bank or a

public limited company, either himself or through any member of his family or any

other person acting on his behalf,-

(a) lend or borrow or deposit money, as a principal or an agent to, or from or with, any

person or firm or private limited company within the local limits of his authority or

with whom he is likely to have official dealings or otherwise place himself under any

pecuniary obligation to such person or firm or private limited company; or

(b) lend money to any person at interest or in a manner whereby return in money or in

kind is charged or paid; Provided that a Government servant may, give to, or accept from a relative or a personal friend, a purely temporary loan of a small amount free of interest, or operate a credit account with a bonafide tradesman or make an advance of pay to his private employee;

 

Provided further that nothing in this sub-rule shall apply in respect of any transaction entered into by a Government servant with the previous sanction of the Government.

 

(ii) When a Government servant is appointed or transferred to a post of such nature as

would involve him in the breach of any of the provisions of sub-rule (2) or sub-rule

(4), he shall forthwith report the circumstances to the prescribed authority and shall

thereafter act in accordance with such order as may be made by such authority.

17. Insolvency and habitual indebtedness

A Government servant shall so manage his private affairs as to avoid habitual indebtedness or insolvency. A Government servant against whom any legal proceeding is instituted for the recovery of any debt due from him or for adjudging him as an insolvent, shall forthwith report the full facts of the legal proceedings to the Government.

 

NOTE. - The burden of proving that the insolvency or indebtedness was the result of circumstances which, with the exercise of ordinary diligence, the Government servant could not have foreseen, or over which he had no control, and had not proceeded from extravagant or dissipated habits, shall be upon the Government servant.