THE ALL INDIA SERVICES (CONDUCT) RULES, 1968
RULE 14. INVESTMENT, LENDING AND BORROWING:
Government of India Decisions
Taking of loans from reputable firms or banks.
(1) It has been decided that taking of loans from reputable firms or banks does not require previous sanction of the Government under this rule.
[M.H.A. O.M. 8/79/62-AIS (III), dated 24th October, 1962]
Definition of small amount used in proviso to sub-rule (4).
(2) A question having arisen and it was decided that the definition of small amount used in proviso to sub-rule (4) depends on the circumstances of each individual cases and no hard and fast criteria can be laid down e.g., what constitute a small loan for an officer drawing Rs. 2,250 may not be shall amount for another officer drawing Rs. 500.
[M.H.A. No. 8/69/73-AIS (III), dated 30-12-1963]
Purchase of shares from Company, etc., having no official dealings.
(3) Instances have come to notice of this Department where members of the All India Services had purchased shares from Company, etc., with which they were not having any official dealings but later on they were appointed/transferred to a post which required them to deal with the company etc., of which he had purchased the shares earlier. The question whether they may be allowed to retain such shares has been considered and it has been held that it would be necessary to abide by the provisions of Rule 14(4) (ii) of the All India Service (Conduct) Rules, 1968 in letter and in spirit. Accordingly, in such cases, either the work concerning the company in question may be withdrawn from the concerned officer or he may be asked to dispose of his shares, irrespective of the fact that the holdings of the officer or any member of his family in the company concerned may be nominal.
It is requested that the above decision may be uniformly applied in all such cases.
[D.P. & A.R letter No. 11017/2/77-AIS (III), dated 22nd April, 1977]
Purchase of share of companies from out of a quota reserved for the friends and associates of the Directors of Companies.
(4) A question has raised whether a member of All India Services can purchase share of companies from out of a quota reserved for the friends and associates of the Directors of Companies. The provisions of rule 14(2) of the AIS Conduct Rules 1968, makes it clear beyond doubt that a member of All India Services should be circumspect in the matter of making investments and there is room for the inference that purchase of shares in a company from out of the quota reserved for friends and associates of Directors is likely to embarrass him in the discharge of his official duties at some time or other. In the circumstances, and keeping in view of the provisions of rule 14(2) of the AIS Conduct Rule,/1968 member of AIS should not purchase nor should he permit any member of his family to purchase shares from out of the quota reserved for friends and associates of Directors of Companies.
[DP&T No. 11017/52/92 AIS (III), dated 27/1/1993]