(1) An employee shall not indulge in badla trading or trade, speculate in stock, shares, securities or commodities of any description.
(2) No employee, shall, when in knowledge of unpublished price sensitive information, encourage any person to deal in the securities to which it relates.
(3) Each employee is deemed to be an "insider" within the meaning of 46 [clause (g) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 and the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015] are applicable to each employee of the Board. In case of allegations of insider trading, the onus would be on the employee to prove that he is not guilty of insider trading.
Movable, immovable and valuable property
66.
47 [(1) Every employee shall make a declaration of his assets and liabilities as under,- 46 Substituted for the words, numbers and symbols “sub-section (e) of Section (2) of the Securities and Exchange Board of India (Insider Trading) Regulations, 1992 and the provisions of the Securities and Exchange Board of India (Insider Trading) Regulations, 1992" by the SEBI (Employees' Service) (Second Amendment) Regulations, 2018, w.e.f. 1.6.2018.
47 Substituted by SEBI (Employees' Service) (Second Amendment) Regulations, 2015, w.e.f. 21-4-
2015. Prior substitution it read as under:
'Every employee, shall, on his first appointment, and thereafter every year on 31st December, irrespective of whether or not there has been any change in the holding, furnish to the Board a return of his assets and liabilities, in such form as may be specified by the Board, giving full particulars regarding :—
(a) the immovable property inherited by him, or owned or acquired or held by him on lease or mortgage, either in his name or in the name of any member of his family;
(b) Stocks, shares, debentures, units or other marketable securities and fixed deposits inherited by him or similarly owned, acquired or held by him ;
(c) Other movable property inherited by him or similarly owned, acquired or held by him, if the value exceeds such amount as may be specified by the Chairman from time to time ; and
(d) Debts and other liabilities incurred by him directly or indirectly if the total liabilities of an employee exclusive of those which are fully secured, exceeds his basic pay for twelve months.'
(a) every employee, within thirty days from the date of joining the services of the Board shall furnish to the Board, information as per sub-section (2) of section 44 of the Lokpal and Lokayuktas Act, 2013;
(b) every employee in the service of the Board as on commencement of the Lokpal and Lokayuktas Act, 2013 and continuing in the service of the Board, shall furnish information to the Board, relating to such assets and liabilities as per sub-section (3) of section 44 of the Lokpal and Lokayuktas Act, 2013;
(c) every employee shall file with the Board, on or before 31st July every year, an annual return of such assets and liabilities as per sub-section (4) of section 44 of the Lokpal and Lokayuktas Act, 2013.]
(2) No employee shall, except with the previous knowledge of the competent authority, acquire or dispose off any immovable property by lease, mortgage, purchase, sale, gift or otherwise either in his own name or in the name of any member of his family.
(3) Provided that the previous sanction of the competent authority shall be obtained by the employee if any such transaction is with a person having official dealings with the employee.
Where an employee enters into a transaction in respect of movable property either in his own name or in the name of the member of his family, he shall within 30 days from the date of such transaction, report the same to the competent authority, if the value of such property exceeds such amount as may be specified by the Chairman from time to time.
(4) Provided that the previous sanction of the competent authority shall be obtained by the employee if any such transaction is with a person having official dealings with the employee.
The competent authority may, at any time, by general or special order require an employee to furnish within a period specified in the order a full and complete statement of such movable or immovable property held or acquired by him or on his behalf or by any member of his family as may be specified in the order. Such statement shall, if so required by the competent authority, include the details of the means by which, or the source from which, such property was acquired.
Lending and Borrowings
67. No employee shall in his individual capacity -
(i) borrow or permit any member of his dependent family members to borrow or otherwise place himself or a member of his dependent family members under a pecuniary obligation to a broker or a money lender or a subordinate employee of the Board or any person, association of persons, firm, company or institution, whether incorporated or not, having dealings with the Board;
(ii) incur debts at a race meeting;
(iii) lend money in private capacity to a constituent of the Board or have personal dealings with such constituent in the purchase or sale of bills of exchange, Government paper or any other securities; and
(iv) guarantee in his private capacity the pecuniary obligations of another person or agree to indemnify in such capacity another person from loss except with the previous permission of the competent authority;
Provided further that an employee may obtain a loan from a cooperative credit society of which he is a member or stand as surety in respect of a loan taken by another member from a cooperative credit society of which he is a member.
Demonstrations
68. No employee shall engage himself or participate in any demonstration which is prejudicial to the interests of the Board sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality, or which involves contempt of court, defamation or incitement of an offence.
Joining of Association prejudicial to the interests of the country
69. No employee shall join, or continue to be a member of an association, the objects or activities of which are prejudicial to the interests of the Board sovereignty and integrity of India or public order or morality.
Raising of subscriptions
70. No employee shall, except with the previous sanction of the competent authority, ask for or accept a contribution to or otherwise associate himself with the raising of any funds or other collections in cash or in kind in pursuance of any objective whatsoever.
Not to misuse official position