Competition Commission Moves To Limit Employees and Their Families' Investments in Stocks
Moneylife Digital Team 10 March 2025
The competition commission of India (CCI) has proposed new regulations imposing stringent restrictions on its employees and their families regarding investments in the stock market. These measures, outlined in the Draft CCI (Conduct) Rules, 2025 aim to prevent conflicts of interest and uphold the integrity of the regulatory body.
 
In a note, the CCI says, "The nature of work in Competition Commission is commercially sensitive. The officials working in the Commission deal with confidential and commercially sensitive information (CSI) received from various parties, which requires a high level of maintenance of confidentiality in handling such matters. Therefore, draft Competition Commission of India (Conduct) Rules, 2025 are proposed to be introduced, in line with those already existing in other similarly placed organizations, to ensure confidentiality in the Commission and to set high standards of ethics among the employees."
 
Under the proposed rules, CCI employees will be prohibited from making direct or indirect investments in commodity derivatives, equity, and equity-related instruments, including convertible debentures (CDs) and warrants. However, they will be permitted to invest in mutual funds (MF), non-convertible bonds (NCBs), non-convertible debentures (NCDs), initial public offerings (IPOs) and rights issues related to shares they already hold.
 
The restrictions extend beyond the employees themselves, covering investments made by dependent children or wards managed by the employee as a guardian and investments by spouses, dependent children, dependent parents and dependent parents-in-law using money received from the employee.
 
Additionally, the draft rules prohibit CCI employees from engaging in speculative trading, including badla transactions and from encouraging any person to trade in securities based on unpublished price-sensitive information (UPSI).
 
These proposals align with broader efforts to reinforce ethical standards among regulatory personnel and prevent any misuse of privileged information, CCI says, adding, similar measures have been implemented in other regulatory bodies to maintain transparency and public confidence in financial markets.
 
The proposed regulations are open for stakeholder consultation before final implementation. Industry observers will be keenly watching how these rules shape regulatory conduct and impact CCI personnel.
 
The competition commission has asked interested parties to submit written comments on the draft Rules by 6 April 2025 by duly filling a form hosted on the CCI's website at: https://cci.gov.in/stakeholders-topics-consultations.
Comments
Restoring SEBI’s Credibility: A Roadmap for the New Chairman
Sucheta Dalal, 07 March 2025
It is Tuhin Kanta Pandey’s first day as chairman of the Securities & Exchange Board of India (SEBI) as I write this column and he is already facing a storm. His predecessor, Madhabi Puri Buch, and three whole-time members (WTMs) are...
SEBI Will Reveal Conflict of Interest, Says Tuhin Kanta Pandey: Report
Moneylife Digital Team 07 March 2025
Tuhin Kanta Pandey, the newly appointed chairperson of the Securities and Exchange Board of India (SEBI), has emphasised the market regulator's commitment to disclosing any conflicts of interest among its board members to build public...
Emami Realty Fined Rs5 Lakh for Violating ICDR and LODR Regulations
Moneylife Digital Team 07 March 2025
Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs5 lakh on Emami Realty Ltd for violations related to the issuance of zero coupon unsecured optionally convertible debentures (OCDs) to its...
BCL Industries, MD Pay Rs42.90 Lakh to Settle Non-disclosure, Insider Trading Violation Case
Moneylife Digital Team 07 March 2025
BCL Industries Ltd and its promoter and managing director (MD), Rajinder Mittal, have agreed to pay Rs42.90 lakh to settle adjudication proceedings initiated by the Securities and Exchange Board of India (SEBI) for alleged violations...
Free Helpline
Legal Credit
Feedback