TGBIE’s diktat raises questions

Govt employees barred from ‘Stock Market Speculation’ under CCS Conduct Rules?
The Telangana Board of Intermediate Education (TGBIE) circular on Friday mandating the faculty members of the Government Junior Colleges in the State to attend an online awareness programme for safe investments has come under scanner in the Central Civil Services (CCS) Conduct Rules, 1964, which have once again come into focus for government employees.
A recent advisory has reiterated that speculative trading in stocks and investments is strictly prohibited for individuals serving in Central Civil Services and Public Sector Undertakings (PSUs). However, there is no clarity whether this applies to State government employees and state PSUs.
Telangana Government Junior Colleges Association, president P Madhusudhan Reddy, pointed out, “Under Rule 16 of the CCS Conduct Rules, government servants are barred from engaging in any form of speculation in stocks, shares, or other financial instruments. While authorized investments such as mutual funds or long-term holdings are permitted, frequent buying and selling of shares — often associated with short-term profit motives — is classified as speculative activity and is not allowed.”
Further, the rule reportedly applies uniformly to both executive and non-executive employees across PSUs, reinforcing ethical standards and financial discipline within public service. The intent behind the regulation is reportedly to prevent conflicts of interest, misuse of insider information, and financial distractions that could compromise professional integrity.
Speaking to The Hans India, a senior TGBIE official said, the prohibition does not extend to systematic investment plans or retirement-linked portfolios, provided they are managed transparently and do not involve speculative behavior.
Employees are encouraged to consult with their department heads or financial advisors before making any investment decisions to ensure compliance with service conduct norms.















