Investment: Can government employees invest in the stock market? Here are the rules..

Public interest in the stock markets has increased recently. The National Stock Exchange (NSE), the country's largest stock exchange, reported that 10 million new investors joined in just eight months, from January to September 2025. The total number of investors on the NSE has now reached over 120 million. But can government employees invest in the stock market?

There are certain rules for government employees to invest in shares. If you are a government employee or have a family member who is employed by the government, it's important for you to know these rules. Government employees are not permitted to engage in speculative trading in shares or any other instruments. This is stated in Section 35(A) of the Central Civil Services (Conduct) Rules, 1964.

This rule states that government employees are not permitted to make any investment that involves speculation. This means that government employees are not allowed to repeatedly buy and sell shares for profit.

This is because government regulations consider this to be speculative trading. Government employees are not prohibited from investing long-term. They can invest in the stock market through stock brokers.

However, they must ensure that they do not make any investments that could create a conflict of interest due to their job.

The central government established specific regulations for employees in 2019. According to these regulations, Group A and Group B category officers are required to disclose investments worth more than ₹50,000 in a financial year.

In addition, officers and employees are permitted to invest in mutual funds and debentures. However, intraday trading is prohibited.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.