All India Services (AIS) government personnel are prohibited from often speculating in the acquisition or selling of shares, securities, or other investments. However, they are permitted to occasionally invest in shares through stock brokers or other individuals who are officially permitted by applicable legislation.
According to a recent circular from the Department of Personnel and Training (DoPT), members of the AIS are required to inform the appropriate authority about the specifics of their stock or share investments if they surpass six months' worth of basic pay in a calendar year.
The information must be submitted by the following January 31st. This means that AIS members can invest any amount up to six months' wages without informing the necessary authorities. The compensation granted to AIS members is based on the recommendations of the 7th Pay Commission.
As per the circular released on 20th March 2023 by DoPT, Rule (14(1) of AIS (Conduct) Rules, 1968, allow the managerial authorities to keep an eye on the transactions in any share, stock, or investments in respect of All India Services (AI) members.
Additionally, it is also decided that an intimation should be sent in the encircled Proforma to the set authority every year if the total transactions related to share, stock, or other investments exceed six months’ basic pay of a Government servant during a calendar year. When a single transaction exceeds two months' basic pay, the AIS member must additionally notify the appropriate authority.
According to the DoPT, it has also been made clear that notification to the appropriate authority is still necessary if a transaction exceeds two months' basic pay of the member of services as specified in Rule 16(4) of the aforementioned rules because shares, securities, debentures, etc. are considered moveable property under Rule 16 of the AIS (Conduct) Rules, 1968.
