Whether CA in Practice is allow to do trading under F&O segment ?
As per Clause 11 of Part 1 of the First Schedule of The Chartered Accountant Act, 1949 A Chartered Accountant in Practice shall be deemed to be guilty of professional misconduct if he engaged in any business or occupation other than profession of Chartered Accountant unless permitted by Council so to engage.
According to ethical standard board of ICAI Derivatives Transactions are considered in the nature of business or occupation other than the profession of chartered Accountant, not in the nature of investment. It Covers under Clause 11 of Part 1 of the First Schedule of Chartered Accountant Act 1949. It Simply Means that Trading of Future and options are not consider like the investment.
Also we need to understand that the same is not covered in the list of General Permissions Granted under regulation 190A of the CA Regulations 1988 as amended from time to time.
Therefore, Specific Prior Permission from Council is required on individual basis to be taken by Practicing CA to engaged in F&O transactions.
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It is permissible for a member in practice to engage in derivative transactions in his personal capacity, but not in professional capacity i.e for clients. Such engagement in derivatives would not be violative of provisions of Clause (11) of Part-I of First Schedule to The Chartered Accountants Act, 1949.
Link of ICAI’s resource for the same is mentioned below.
https://resource.cdn.icai.org/65918esb53125.pdf
It is permissible for a member in practice to engage in derivative transactions in his personal capacity, but not in professional capacity i.e for clients. Such engagement in derivatives would not be violative of provisions of Clause (11) of Part-I of First Schedule to The Chartered Accountants Act, 1949.
Sir,
Thanks for your informative article.
Whether we have to apply to Regional council or Central Council?
Also whether any specific form is there to apply?
Please guide