NEW DELHI: The government on Thursday revised a 27-year-old cap on investment in the stock markets by bureaucrats to six months of basic pay Under the 1992 rule, Group A and B officials had to intimate the government in a form if the total transaction in shares, debentures or mutual funds exceeded Rs 50,000 in a financial year. The limit has now been raised to over five-six times, considering the salary structure of government executives. But the need to fill in a separate form won’t be necessary if their cumulative transactions in stocks do not exceed six months of basic pay.The rules still stipulate that no government servant shall speculate in any stock or any other investment with frequent purchase or sale of such kind deemed to be speculation. But occasional investments made through stock brokers or duly authorised persons are allowed. The prescribed form is designed to “enable the administrative authorities to keep a watch over such transactions”.

Source: Economic Times February 08, 2019 02:03 UTC