Question ID : 41011

Trading in derivatives for CAs in practice

Recently I came across news saying Central Council now allowed Chartered Accountants to trade in Equity Derivatives. Can anyone elaborate on the same? Was it like changing permission requirements as required under Clause 11 Part 1 of First Schedule (from Specific permission to General permission) or was it prohibited previously? Secondly, why CAs are not allowed to trade in derivatives (Even though done on Recognised Stock Exchanges)? Thanks in Advance!

A chartered accountant in practice has always been allowed to invest or trade in equity shares (and not their derivatives) on a proprietary basis. They cannot do it on behalf of clients as this was not allowed when one is engaged in a CA practice.