CCI's draft conduct rules place restrictions on employee investments

The antitrust watchdog has said that the draft rules are meant to strengthen the regulatory framework governing vigilance administration in the Commission

The Competition Commission of India (CCI) on Friday released draft code rules which suggest restrictions on investments by its employees and their dependent children in commodity derivatives, equity and equity-related instruments, and initial public offerings, among others.

 

In its Draft Conduct Rules 2025, the antitrust watchdog has said the draft rules aim to strengthen the regulatory framework governing vigilance administration in the Commission, ensure confidentiality, and set high ethical standards among employees.

 

“No employee shall make any direct or indirect investment in commodity derivatives, equity and equity-related instruments, including convertible debentures and warrants, except units of mutual funds, non-convertible bonds, non-convertible debentures, initial public offerings, and rights issues in respect of shares already held by them,” the draft rules said.

 

Besides CCI’s employees and their dependents, these restrictions will also apply to investments made by a spouse, dependent children, dependent parents, and dependent parents-in-law of the employee using monies received from the employee.

 

According to experts, most regulators allow their staff members to invest but require them to make necessary disclosures. The rules experts say have to be notified by the Ministry of Corporate Affairs once they are finalised after public consultation. 

 

The Commission has also proposed that every employee must maintain strict confidentiality regarding its affairs and must not divulge or disclose, directly or indirectly, any confidential information or details related to the Commission’s operations.

 

“The nature of work in the Competition Commission is commercially sensitive. Officials working in the Commission deal with confidential and commercially sensitive information received from various parties, which requires a high level of confidentiality in handling such matters,” the CCI said.

 

Currently, the CCI follows the Central Civil Services (Conduct) Rules, 1964, under Rule 7 of the CCI Rules, 2009, which deals with salary, allowances, and other terms and conditions of service for the secretary, officers, and other employees of the Commission.

 

The CCI has invited stakeholders to submit written comments on the draft norms within 30 days, ending April 6, 2025.

 

The Competition Act, 2002, was enacted to promote and sustain competition in markets, prevent practices that adversely affect competition, protect consumer interests, and ensure freedom of trade for market participants in India.