Online Games, Betting and Intraday Trading - Guidelines for Serving Armed Forces Personal

Can serving members of the Armed Forces engage in activities like intraday stock trading, playing online games, indulge in betting, or invest in cryptocurrencies? Let's break it down in simple terms and explore what's possible.

Firstly, Rule 16 of the CCS (Central Civil Services) Conduct of 1965 is often highlighted in numerous articles and videos. It strictly prohibits government servants from engaging in speculation in stocks, shares, or other investments. 

Let’s decode what "speculation" actually means. In Hindi, speculation translates to सट्टेबाज़ी—which in financial terms refers to high-risk investments likely to result in capital loss. This encompasses online games, betting, cryptocurrency trading, and more. 

Also, government job is a full time work and government doesn't allow anyone to indulge in any other engagement which takes time to away from their core responsibilities. 

So, no central government employee can involve themselves in these activities.

But there is a catch..

Interestingly, the Central Civil Services (CCS) rules do not apply to the armed forces, who are instead governed by the Army Act of 1950 (similar act for Air Force and Navy). The act does not explicitly address various forms of speculative investment activities. (Paramilitary forces are covered under CCS). 

This might lead one to wonder if armed forces personnel are permitted to engage in speculation.

However, the Army Act of 1950 contains Rule 63, which pertains to the Violation of Good Order and Discipline and there is a note under this Rule 63 that explicitly prohibits gambling.

Also, serving in the armed forces (or any central government job) is a full-time commitment. Any distractions, such as speculative activities, could potentially lead to disciplinary actions due to divided attention from core responsibilities.

Furthermore, it's important to note that various circulars within the armed forces ecosystem have identified and banned numerous betting and online gaming apps. There have also been instances of espionage activities carried out through these apps. This clearly indicates a firm stance against such activities, reinforcing the commitment to maintaining discipline and focus among the armed forces personnel. (Read about Chinese Apps) 

Ustad's Recommendation: It's important for all military personnel and their families to avoid risky activities like gaming, betting, crypto trading, and Intraday trading in the stock market because of the possible legal and disciplinary consequences.

Also, some of theses activities may not be directly specified, but it's well-understood that the culture in the Armed Forces is built on discipline and high standards. Thus, any activity that might tarnish its reputation should be avoided by everyone.

If you're interested in the stock market, it's better to choose long-term investments, which means keeping your investments for more than six months and having them managed by professionals. Mutual funds investments are also good option for fauji family members. 

P.S: Some serving fauji family members have gotten into trouble for not reporting money they made from online gaming, which led to them receiving notices from the income tax department.  If you have already invested and made earning from these means, you, make sure you use the correct income tax return form (ITR 2 onwards)  to report this income and avoid further issues.

With this advice, we hope our fauji family can stay safe. 

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Jai Hind!