Competition Commission issues draft rules on conduct of its staff; moots curbs on equity investments

New Delhi: Competition Commission of India (CCI) on Friday came out with draft rules on conduct of its employees, wherein the regulator has also proposed certain curbs on stock market investments by the staff.

Seeking stakeholder comments on the draft Competition Commission of India (Conduct) Rules, 2025, the watchdog said the proposed norms are aimed at ensuring confidentiality and setting high standards of ethics among the employees.

The regulator keeps a tab on unfair business practices in the marketplace and works to promote fair competition.

Under the draft rules, the watchdog has mooted certain restrictions for the staff with respect to investments in the securities market.

"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 and non-convertible debentures, initial public offerings and in rights issues in respect of the shares already held by them," it said.

These curbs will be applicable on investments of dependent children or other wards managed by the employee as a guardian as well as on investments made by spouse, dependent children, dependent parents and dependent parents-in-law of the employee out of the monies received by the staff concerned.

"The nature of work in Competition Commission is commercially sensitive. The officials working in the Commission deal with confidential and commercially sensitive information received from various parties, which requires 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," the watchdog said in a background note about the proposed rules.

Among others, CCI has proposed that an employee can take up commercial employment within one year of his or her retirement only with the previous approval in writing of the Commission.

"No employee of the Commission who has retired from service shall, within a period of one year from the date when he finally ceases to be in the Commission's service, accept or undertake commercial employment except with the previous approval in writing of the Commission," according to the draft rules.

Stakeholders can submit their comments on the draft rules till April 6, 2025.