New Delhi, July 18 -- Goldman Sachs has introduced stricter rules governing employee participation in prediction markets, warning that staff who place bets on restricted events could be required to forfeit all profits and may even face dismissal for repeated violations.

According to a report by the Financial Times, the Wall Street investment bank has instructed employees to limit their activity on prediction market platforms to sports and entertainment events. Betting on political developments, financial markets, interest rates, elections or other sensitive events has been explicitly prohibited.

The tighter policy is aimed at reducing compliance risks and preventing potential conflicts of interest arising from employees' access to confi...