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Atul Goyal asked 1 year ago

Doubt No.1 : Is it the correct that the list given in the specific permission is exhaustive in nature and anything beyond it is NOT Permissible at all ? If Yes, then “Trading in the commodity derivative” (as given in the question ) is not covered in the list, then why as per the solution it is written “permission will be required” instead of disallowing such activity at all. 
Doubt No 2:  Sir in the list of MCS services, activity of broking is prohibited, Doesn’t the activity of trading in the commodity derivative amount to broking and thus prohibited for CA. (Require clarity)

1 Answers
RaviRavi Staff answered 1 year ago

Regulation 190A
190A. Chartered Accountant in practice not to engage in any other business or occupation A chartered accountant in practice shall not engage in any business or occupation other than the profession of accountancy, except with the permission granted in  accordance with a resolution of the Council.
From above it is clear that council can modify this list.
Now as per 190A council passed a resolution for this matter. It has List (A) Permission Granted Generally (Where no prior approval is required) and List (B) Permission to be granted specifically (Where prior approval is required)
Further List (B) says that apart from matters given in the list, Executive committee consisting president & vice president can increase the list and include any business or occupation which can done after taking prior approval. So basically they can extend list.
That means at a point of time list in exhaustive CA in practice cannot do anything else other  than given in List (A) & List (B). These lists can be modified by council or executive committee. Generally council resolution is passed to change this important list.
Recent Change

End of Mar 2021 Council & ESB said that
Investing in shares on his own name (individual capacity) is allowed as regular investment activity, now further they said that investing in equity derivative is also allowed.
But CA cannot do it on behalf of others / clients, he cannot do it in professional capacity, for doing this he will have to leave COP. Further he cannot trade in commodity derivatives.
Broking means doing trading on behalf of clients as business activity, which is not allowed. Trading on individual level is allowed doing it for others in the form of broking is not allowed. 

RaviRavi Staff replied 1 year ago

Yes this case gets covered under clause 11, mentioning it is must.

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