Section 16 in M.P. Panchayat Services (Conduct) Rules, 1998
16. Investment, lending and borrowing.
(1)No Panchayat Servant shall speculate in any stock, share or other investment.Explanation. - Frequent purchase or sale of both of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule.(2)No Panchayat servant shall make, or permit any member of his family or any person acting on his behalf to make, any investment which is likely to embrass or influence him in discharge of his official duties.(3)If any question arises whether any transaction is of the nature referred to in sub-rule (1) or sub-rule (2) the decision of the Secretary or Chief Executive Officer thereon shall be final.(4)No Panchayat Servant shall save in the ordinary course of business with a bank or a firm of standing duly authorised to conduct banking business, either himself or through any member of his family or any other person acting on his behalf,-(a)lend or borrow money, as principal or agent to or from any person within the local limits of the authority with whom he is likely to have official dealings, or otherwise place himself under any pecuniary obligation to such person; or(b)lend money to any person at interest or in a manner whereby return in money or in kind is charged or paid :Provided that a Panchayat Servant may, give to, or accept from, a relation or a personal friend, a purely temporary loan of a small amount free of interest or operate a credit account with a bona fide tradesman or make an advance of pay to his private employee :Provided further that nothing in this sub-rule shall apply in respect of any transaction entered into by a Panchayat Servant with previous sanction of the Chief Executive Officer.(c)When a Panchayat Servant is appointed or transferred to a post of such nature as would involve him in the breach of any of the provisions of sub-rule (2) or sub-rule (4) he shall forthwith report the circumstances to the Chief Executive Officer and shall thereafter act in accordance with such orders as may be made by the Chief Executive Officer and shall thereafter act in accordance with such orders as may be made by the Chief Executive Officer.(5)Notwithstanding any thing contained in sub-rule (4),-(a)Secretary or Chief Executive Officer, as the case may be, relax any provision of this rule in relation to Class IV servant belonging to Panchayat Service;(b)The aforesaid provisions shall apply with such restrictions or exemptions, as may be imposed by the Chief Executive Officer or Secretary as the case may be, to lending money to any person or to borrowing money from any Co-operative Society registered under the Madhya Pradesh Co-operative Societies Act, 1960 (No. 17 of 1961) by Panchayat Servant.
