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

[amritak1952]

dear friend,

your conduct is governed under CCA rules which clearly states that you can invest but cannot speculate in any form if you invest you are supossed to inform your department so that it can be noted down to your personal file in other case if you are speculating in shares and caught be prepare for major punishment which includes increment stop, break in service etc etc. there may be big suggestion over here but this is the fact even if your family members are involved they have to also produce evidence of their source of earning on event of some problems
amrit

 

[greatgk]

thank you all for rply. future trading is speculating or not?

 

[Niranjanam]

thank you all for rply. future trading is speculating or not?

All security transactions without delivery will be considered as speculation and will invite disciplinary action

 

[teja14]

http://www.persmin.gov.in/DOPT/Empl...Rules_1964/ccs_conduct_rules_1964_details.htm

 

[chilgu]

income from derivative trade whether it is though NSE or MCX is considered business income and intra-day trading in share market is considered speculative income. A simple explanation is available that a govt. servant can do only delivery based investment.

 

[mastermind007]

dear friend,
your conduct is governed under CCA rules which clearly states that you can invest but cannot speculate in any form if you invest you are supossed to inform your department so that it can be noted down to your personal file in other case if you are speculating in shares and caught be prepare for major punishment which includes increment stop, break in service etc etc. there may be big suggestion over here but this is the fact even if your family members are involved they have to also produce evidence of their source of earning on event of some problems amrit

amritak,

I went thru this document
http://www.persmin.gov.in/DOPT/EmployeesCorner/Acts_Rules/ccs(cca)/ccstotal1.htm

Nowhere I am able to find rules you've mentioned. There is a mention of IPC 498a and all that. So, are you sure about family member's status?

Yes, I know Media does gang up and make lots of noise against family (recently it was Nitin Gadkari, few months ago it was Adarsh Towers) but that does not affect legal position of Govt employees and their families. Bashing politicians and Public Servants is a popular past-time for our countries.

As private Individual citizens, they have every right to trade and if a public servant father is paying his son a larger than usual pocket money, both of 'em can be questioned, ridiculed or even sneered at. As long as father can justify source of income, it is legal on both ends. If father cannot justify source of income, father is punishable under law, not the son.

Yes, Law may sound twisted and partial but that is the precis definition of "loophole". Yes, I understand, it may be immoral and unethical and all that sentiments.

All written laws will have loopholes. All unwritten laws are not enforceable!!!

Disclaimer: I have not related to greatgk nor do I have any govt employees as friends. So, there is no personal agenda in this message, just factual and honest representation of state of our legal system to best of my understanding. This is what we've inherited from Brits and I actually wish it were different.

 

[mastermind007]

thank you all for rply. future trading is speculating or not?

Every financial transaction made without an intent of actually consuming the purchased product is a speculation. Whether its land, flats, Gold, Grains, Movie tickets or shares, options or futures.

Whether you purchased and kept it for a fraction of second or whether you purchased and kept it for years, it is still a speculation.

As long as the compelling reason for you to make the purchase was to "benefit" from future appreciation of value of the Goods, it is a speculation.

Unless you are a consumer, you are speculator. If you consume half and sell half (whether you sold for profit or sold for loss), you are speculator for the half that you did not consume.

About the most significant exception in stock markets is that you can sell something you do not already have. But even that is nothing but speculation only.

 

[sachin928111]

if govt considers speculation is bad then y govt servent only no one sud be allowed to speculate. why creating two classes of citizen govt servent and non govt in the country. during his freetime govt servent should equally be treated as ordinary citizen. one bad is allowed for a class of citizen and the same bad is not allowed for other group of citizen.

actually in india gov servent is a very very speciall class which sud not be even our govt believes so. for ex govt accepts medical certificates of unfitness only from a gov doctor as if non gov mbbs dr are not loyal to their profession, certification from a gazetted officer, the latest is paid summer leaves for judges wen lakhs of cases are pending while ac are there in offices. on the other hand ordinary public has to earn his bread daily.educational scholorship for children of gov employee besides their pay. whats the need of it wen govt servents are already earning give that to other needy students. it is a kind of pressure group. they dont care a bit for country or poor ppl. their only agenda is self intrest

 

[DWeeP]

Trading in FnO is business and not investing. You can not do business while on job, hence trading is barred.
You will have to fill out ITR4 to show your FnO income/loss to Income tax dept. ITR 4 is only for business/self employed and not for salaried.

Simple way out is trade by an demat/trading account opened in your wife/children/siblings name. Thats the way most do it.