(1) No employee shall speculate in any investment.
Explanation– The habitual purchase or sale of securities of a notoriously fluctuating value shall be deemed to be speculation in investments within the meaning of this sub-regulation.
(2) No employee shall make or permit his wife or any other member of his family to make any investment likely to embarrass or influence him in the discharge of his official duties.
(3) If any question arises whether, a security or an investment is of the nature referred to in sub-regulation (1) or sub-regulation, (2) the decision of the Managing Director thereon shall be final.
(4) No employee shall make any investment in any Co-operative society or public company which has an interest in Tamilnadu Water Supply and Drainage Board.
This prohibition does not apply to investment in the loans floated by the Board from time to time.
(5) No employee shall, except with the previous sanction of the Managing Director, lend money to any person possessing land or valuable property within the local limits of his authority or at interest to any person:
Provided that an employee may make an advance of pay to a private servant or give a loan of a small amount free of interest to a personal friend or relative even if such person possesses land or valuable property within the local limits of his authority.
(6) No employee shall, save in the ordinary course of business with a bank or firm of standing borrow money from or otherwise place himself under pecuniary obligation to any person within the local limits of his authority, or any other person with whom he is likely to have official dealings nor shall he permit any member of his family, except with the previous sanction of the Managing Director to enter into any such transaction:
Provided that an employee may accept a purely temporary loan of small amount free of interest from a personal friend or relative or operate a credit account with a bona-fide tradesman.
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(7) When an employee is appointed or transferred to a post of such a nature as a involve him in the breach of any of the provisions of sub-regulation (5) or (6) he shall forthwith report the circumstance to the Managing Director and shall thereafter act in accordance with such orders as may be passed by the Managing Director. An employee in Class V or Class VI service in the Board’s Secretariat shall make the report referred to above to the Managing Director and an employee of such service in the Chief Engineer’s Office and other subordinate office to the Chief Engineer.
(8) Employees of every class may place deposits in and purchase debentures of the Madras Co-operative Central Land Mortgage Bank Limited, or the Madras Cooperative Central House Mortgage Bank Limited, but shall not hold any office therein or take any part in the management thereof.
(9) An employee in the Board’s Secretariat/Chief Engineer’s Office and other Subordinate offices may with the previous sanction of the Managing Director/ the Chief Engineer become a member of a land or house mortgage bank provided that he already owns land or house, as the case may be, in the area within the jurisdiction of such bank, but shall not hold any office therein or take any part in the management thereof.
(10) If an employee is appointed or transferred to any area within the jurisdiction of a land mortgage bank or house mortgage bank, of which he is a member he shall at once bring the fact to the notice of his immediate superior who, if he has authority to do so, may repost the employee to an area outside the jurisdiction of that bank, or if he has no authority to do so, submit the case for the orders of the officer having such authority.
(11) Employee of every class may take out insurance policies from, and become members, of the South India co-operative Insurance Society Limited.
(12) Employees of every class may become members of Co-operative House Buildings Societies.
Explanation – Co-operative House Building Societies aforesaid shall include all types of Co-operative Societies whose object is the construction of house for their members or the grant of loans for such construction by their members.
(13) Notwithstanding anything contained in this regulation, an employee may borrow money from a Co-operative Society, of which he is a member, provided that, where the borrowing is on personal security, the surety shall be of a status equal to, or higher than, that of the borrower.
(14) The prohibition against lending and borrowing of money applies to all loans, credits, advances, supply of articles or accommodation at unduly low rates, or for insufficient consideration and to sales or property for inordinately low prices.
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(15) The fact that an employee lending money is acting as an executor, administrator or as a trustee without profit or advantage to himself shall not exempt him from the operation of this regulation.
(16) An employee who belongs to a Joint Hindu Family carrying on the business of money lending as an ancestral profession is exempted from the prohibition provided he takes no active part in the business and is not employed in the area in which the business of the Joint Hindu Family is carried on.