Major-penalty disciplinary proceedings require an inquiry before the specified penalties may be imposed. The disciplinary authority may inquire itself or appoint an inquiring authority; the Internal Complaints Committee is the inquiring authority for sexual-harassment complaints where no separate procedure applies. Definite articles of charge, supporting facts, documents and witnesses must be served, with time for written defence and representation. The employee may inspect relevant records, seek production of relevant documents, cross-examine witnesses, lead defence evidence, and submit briefs; non-compliance may permit an ex parte inquiry.

Employee misconduct may attract minor penalties, including censure, withholding promotion or increments, recovery of pecuniary loss, and limited non-cumulative pay-stage reduction, or major penalties, including specified reduction in pay, grade, post or service, compulsory retirement, removal, or dismissal. Established charges of disproportionate assets or unlawful gratification ordinarily require removal or dismissal, subject to exceptional recorded reasons. Recovery of quantified pecuniary loss may be made through lawful means without exceeding that loss. Specified administrative, probationary, retirement, and contractual employment actions are not penalties.

Employee suspension may be ordered where disciplinary proceedings are contemplated or pending, State security is prejudiced, or a criminal case is under investigation, inquiry, or trial. Suspension may also arise by deemed operation upon qualifying detention or conviction and imprisonment. It continues until modified or revoked, subject to periodic review and time-limited extensions. During suspension, the employee receives subsistence allowance at prescribed rates, with enhanced allowance subject to absence of employee-attributable delay. The suspension period may be treated as duty or leave where the employee is not dismissed, removed, or compulsorily retired.

Sexual harassment of a woman employee at the workplace is prohibited, with its meaning governed by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Complaints are handled by the Internal Complaints Committee, which may establish its procedure, initiate a reasoned inquiry, frame charges, receive the employee's defence, and issue an inquiry report. The Committee may also provide counselling or support to the complainant. The Competent Authority initiates disciplinary proceedings and imposes penalties for proven violations.

Misuse of Authority-granted facilities and concessions, including allotted residential accommodation, is prohibited. Residential accommodation may not be sub-let, leased, or occupied by another person unless expressly permitted. An employee must vacate allotted residential accommodation upon determination or cancellation of the allotment within the specified period.

Employees must not, through broadcasts, electronic media, named or anonymous publications, press communications or public utterances, make statements of fact or opinion adversely criticising any current or recent policy or action of the Authority or Government. The prohibition applies regardless of the medium used or whether publication is made in the employee's own name, pseudonymously or through another person.

Employee service discipline prohibits an employee from addressing an appeal, representation or petition to any outside authority or person concerning a matter relating to the employee's service in the Authority. Such external communication is deemed a breach of discipline.

Employees require prior sanction to approach a court or the press to vindicate an official act subjected to adverse criticism or defamatory attack. If no response is received within 30 days of the Competent Authority receiving the request, permission may be assumed. Actions to vindicate private character or acts done in a private capacity are not restricted, but the employee must report such action to the Competent Authority.

Arrest for debt, criminal charges, or detention under legal process places an employee under deemed suspension from the date of arrest or detention for the period directed by the Competent Authority. Payments during that period are subject to adjustment based on whether the period is treated as duty or leave. Full pay and allowances require treatment as duty and acquittal or proof that no improper conduct caused detention. Conviction or committal for specified misconduct may result in dismissal or other penalties, while acquittal after conviction requires reinstatement.

Employees must avoid habitual indebtedness or insolvency and promptly disclose debt-recovery or insolvency proceedings to the Competent Authority. Employees deemed to be in debt must provide signed half-yearly financial statements identifying corrective steps. False statements, failure to submit statements, inability to liquidate debts within a reasonable time, or seeking insolvency-court protection may attract disciplinary action.

Employees must comply with local law on intoxicating drinks and drugs and ensure that no influence affects official-duty performance. They must not appear intoxicated in a public place or habitually use intoxicating drinks or drugs in excess. Public places include public conveyances and accessible locations, but exclude premises where lawful consumption is allowed under a valid licence or permit.

Employee participation in recovery auctions is prohibited where the Authority auctions movable or immovable property pursuant to recovery proceedings under the Act or enactments listed in its First Schedule. The restriction covers both direct and indirect participation by any employee.

Financial creditor standing to initiate a section 7 insolvency application in a consortium lending arrangement involves the relationship between an individual lender's declaration of default and collective decision-making under inter-se arrangements. The issues also cover the security trustee mechanism for holding and enforcing security, procedures for recalling facilities and coordinated enforcement, and the scope of a continuing guarantee and guarantor liability. The appeal was dismissed after no error was found in the appellate order.

Employees must not misuse their official position, seek or accept favours from an IFSC Unit, or obtain personal favours for themselves, family members, relatives or friends. Meetings with outside-agency representatives at residences or temporary tour headquarters for official discussions are prohibited. Oral or personal discussions on official dealings are allowed only where necessary, with the superior informed, and written communication must ordinarily be used. Employees must avoid conduct or facilities that compromise integrity and fairness in duty discharge.

Employee involvement in raising subscriptions requires the previous sanction of the Competent Authority. Employees may not ask for or accept contributions, or associate themselves with raising funds or other collections in cash or in kind, without that sanction. The requirement applies regardless of the objective of the fundraising or collection activity.

Employee association membership is restricted where an association's objects or activities prejudice the interests of the Authority, India's sovereignty and integrity, public order, or morality. Employees must neither join such an association nor continue an existing membership. This conduct and discipline obligation safeguards institutional interests and specified national and public-interest concerns, covering both prospective and continuing membership in associations with such prejudicial objects or activities.

Employees must not engage in or participate in demonstrations prejudicial to the Authority's interests, India's sovereignty and integrity, State security, friendly foreign relations, public order, decency or morality. The prohibition also covers demonstrations involving contempt of court, defamation or incitement of an offence.

Employee financial conduct restrictions prohibit borrowing from persons or entities having dealings with the Authority, debts at race meetings, private lending to IFSC Units, and personal financial-service dealings with IFSC Units concerning regulated financial products. Private guarantees and indemnities require prior permission. Cooperative credit society loans and related surety arrangements are permitted. Subscription to an IFSC Unit's debt instrument is not private lending, while compliant employee investments and transactions are not prohibited personal dealings.

Employees must declare assets and liabilities in the prescribed manner or, pending such prescription, as approved by the Competent Authority. Prior intimation is required for acquisition or disposal of immovable property, while previous sanction is mandatory for dealings with persons having official dealings with the employee. Specified movable-property transactions must be reported within 30 days. A complete property statement, including sources of acquisition, may be required.

Employees who possess unpublished price sensitive information must not encourage any person to deal in the related financial products or financial services. Every employee is deemed an insider for purposes of the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended, or other insider-trading regulations notified by the Authority. Those insider-trading provisions apply to each employee.