Can Government Employee Invest in Share Market?

 Introduction

Government employees always remain confused regarding stock market investment. Let's discuss the regulations given in central civil services rules regarding it.

They are allowed to do intraday trading? 

The answer is no they are not allowed to do intraday trading as per rule no. 35(1) which says no government employee shall trade in any stock.

They are
allowed to acquire stake from promoters?

They are not allowed to acquire stakes from promoters. As per rule 40(i) No official can make investment that could impact him in the duty.

They are allow to apply for the IPO?

Yes, They can apply for the IPO. However, you must not be part of the price fixing process of the same company.

Who's Opinion is considered for doubt?

If there is any doubt as to whether an activity is of the kind described in sub-rule (35) or (40), the center Government's opinion shall be decisive.

They are allow to
 do business with public limited firm?

According to the rule No official shall transact business with a public limited corporation either directly or through a relatives

They can take
a loan from official connections?

The answer is no. As per the Rules, 1964 as a primary or representative, lend, borrow, or deposit funds to, from connections are not allow.

Are they allowed to invest in mutual funds?

Yes, They can invest in Mutual funds. However, Only for the long Term.

 Conclusion

The government of India has put some rules on government employees for their own good and as well as keeping the general public in their mind.