Plz note.. this question has nothing to do with Income Tax.
Clause 11 to Part-I of First Schedule to Chartered Accountants Act, 1949:
A CA is deemed to be guilty of professional misconduct if he "engages in any business or occupation other than the profession of CA, unless permitted by Council so to engage".
The council has granted General permission under Regulation 190A, to members to engage in certain specific occupation (like private tutorship, agricultural activity, etc) . In respect of all other occupations, Specific permission of Institiute is necessary.
'Trading in Shares & derivatives' is not something that has been 'generally' permitted by the Council. Hence a CA in practice engaging in such an activity, for majority of his time, without obtaining any specific permission of Institute, shall be deemed to be guilty.
But I would also add, trading activity undertaken once in a while, would not be much of a problem (Though this is just my opinion)
If indulged in Speculative trading it amounts to violation of Professional Ethics and constured as a Misconduct.
CA in practice must obtain specific persmission from the institute to trade in shares.
However, Investment in shares for one's own interest does not lead to professional guilt.
CAclubindia
