i am central govt employee (defence). can i trade intraday and future options

[greatgk]

I searched through internet. didnt get a complete answer. I just want to know is there any legal problem trading intraday and future options as i am a central govt employee.

 

[vssoma]

indian govt. bhi trade karti hain, yaar, you r only employ of govt., kya ministers trade nahi karte kya... jab tak aap koi rules break nahi karte hain....bindaas karsakte hain...good luck

 

[greatgk]

Investments in shares, debentures and mutual funds can be made by the Government servant. However "frequent buying and selling" of these are considered as "speculation" and is banned. Investment in shares, mutual funds etc are to be intimated to the Department at the end of every calender year as per the DoPT OM No. 11013/6/91-Estt. (A) dated 8.4.92 regarding CCS [Conduct] Rules, 1964Transactions in sale and purchase of shares and debentures etc.




source: http://in.answers.yahoo.com/question/index?qid=20090815041841AAd7ZyQ

 

[greatgk]

http://in.answers.yahoo.com/question/index?qid=20090815041841AAd7ZyQ
says
Investments in shares, debentures and mutual funds can be made by the Government servant. However "frequent buying and selling" of these are considered as "speculation" and is banned. Investment in shares, mutual funds etc are to be intimated to the Department at the end of every calender year as per the DoPT OM No. 11013/6/91-Estt. (A) dated 8.4.92 regarding CCS [Conduct] Rules, 1964—Transactions in sale and purchase of shares and debentures etc.

 

[champ]

I searched through internet. didnt get a complete answer. I just want to know is there any legal problem trading intraday and future options as i am a central govt employee.

Legally there seems to be no problem.. But what about morally?

Investing for short term /long term may not require much of your time during your regular working hours. But if you are planning to do intra day trade which requires much of your time dedicated for the same. You are paid by the government to serve the nation and if you do your own work at this time? Ask the question to yourself before asking to some one else..

 

[greatgk]

no i am not planning to do it while on duty

 

[greatgk]

guys many internet answers are- " you can not speculate, but yu can invest"

 

[Niranjanam]

greatgk

You can do delivery based investment
Govt employees are not allowed to speculate in shares , stocks , derivatives and commodities.

 

[Niranjanam]

greatgk

You can do delivery based investment
Govt employees are not allowed to speculate in shares , stocks , derivatives and commodities.All security transaction without delivery will be considered as speculation and will invite disciplinary action

 

[mastermind007]

I searched through internet. didnt get a complete answer. I just want to know is there any legal problem trading intraday and future options as i am a central govt employee.

greatgk,

Assuming that you do not want to do it dishonestly, it would be lot better for you to ask this question within your dept.

As an individual citizen, you have unhindered right to trade, only some of which you may be required to relinquish or do few extra steps for sake of the job.

Since, you are in Defence dept (not directly connected to Ministry of Finance), You may be allowed to trade without restriction. Worse that is likely
is that You may either be barred from trading in companies that have interests in selling armaments or be required to declare your investments internally
within your dept hierarchies.

Whether or not, your family members (wife, children, in-laws etc ...) are restricted legally also needs to be known.
If they are not restricted, you can open account in their name.

Politically Exposed Persons are legally required to declare their status on forms but AFAIK they can trade. Most of these rulings are not prevent
people from trading but it is meant to prevent "Insider Trading".