(1) No Government Servant shall speculate in any stock, share or other investment.
Explanation.- Frequent purchase or sale or both, of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule.
(2) No Government Servant shall make or permit any member of his family or any person acting on his behalf to make any investment which is likely to embarrass or influence him in the discharge of his official duties.
(3) If any question arises whether any transaction is of the nature referred in sub-rule (1) or sub-rule (2), it shall be referred to Government whose decision thereon shall be final.
(4) (i) No Government Servant shall except with the previous sanction of the Prescribed Authority and save in the ordinary course of business with a bank or a firm of standing duly authorised to conduct banking business either himself or through any member of his family or any other person acting on his behalf,-
(ii) lend or borrow or deposit money as principal or agent, to, or from, or with any person or firm or private limited company within the local limits of his authority or with whom he is likely to have official dealings,or otherwise place himself under any pecuniary obligation to suchperson, or firm or private limited company; and
(iii) lend money to any person for interest or in a manner whereby return in money or in kind is charged or paid:
Provided that, a Government Servant may give to, or accept from a relative or personal friend, a purely temporary loan of an amount not exceeding his six 17 months emoluments free of interest or operate a credit account with a bona-fide tradesman or make an advance of pay to his private employee:
Provided further that, nothing in this sub-rule shall apply in respect of any transaction entered into by a Government servant, with the previous sanction of the Prescribed Authority.
(iv) When a Government Servant is appointed or transferred to post of such nature as would involve him in the breach of any of the provisions of sub-rule (2) or sub-rule(4), he shall forthwith report the circumstances to Government and shall thereafter act in accordance with such order as may be made by Government.