Section 16 in Gujarat Civil Services (Conduct) Rules, 1971
16. Investment, Lending and Borrowing.
(1)No Government servant shall speculate in any investment.Explanation. - Frequent purchase or sale or both of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule.(2)[ (i) No Government servant shall make, or permit any member of his family to make, any investment likely to embarrass or influence him in the discharge of his official duties and when a Government servant fails to prevent a member of his family from making an investment of this nature, he shall report to Government forthwith.(ii)No Government servant who is involved in the decision making process of fixation of price of an Initial Public Offering or Follow-up Public Offering of shares of a State Public Sector Enterprise shall apply, either himself or through any member of his family or through any other person acting on his behalf, for allotment of shares in the Initial Public Offerings or Followup Public Offerings of such State Public Sector Enterprise.](3)If any question arises whether a security or investment is of a nature referred to in sub-rule (1) or sub-rule (2), the decision of the Government thereon shall be final.(4)No Government servant shall except with the previous sanction of the Government lend money to any person possessing land or valuable property within the local limits under his authority or at interest to any person :Provided that a Government servant may advance a small amount free of interest to a personal friend or relative, or a private servant even if such person possesses land within the local limit of his authority.(5)No Government servant shall, save in the ordinary course of business with a Bank or a 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 officail dealings, nor shall he permit, any member of his family except with the pervious sanction of the Government, to enter into any such transaction. In case, however, such a transaction is entered into by a member of his family without his permission, it should be reported to Government forthwith.Provided that a Government servant may accept a purely temporary advance of small amount, free of interest from a personal friend or relative or operate a credit account with a bonafide tradesman.(6)When a Government servant is appointed or transferred to a post of such a nature as to involve him in the breach of any of the provisions of sub-rule (4) or sub-rule (5), he shall forthwith report the circumstances to the Government and shall thereafter act in accordance with such orders as may be passed by the Government.Provided that a Government servant belonging to Class III or Class-IV service shall make such report to the Head of his Office.(7)This rule may, in the case of Class IV servants be relaxed in exceptional cases at the discretion of the Head of Office, and in so far as it relates to the lending to or borrowing by Government servants from the cooperative societies registered under any law for the time being in force shall be usbject ot any general or special restrictions or relaxations made or permitted by Government.
