Can a CA in practice allowed to register as SEBI IA ?
@nithin
As per this FAQ on the SEBI website, it is possible for a CA to register as an IA
16.Whether the members of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India are exempted from obtaining registration under IA Regulations?
Members of the Institute of Company Secretaries of India, Institute of Chartered Accountants of India, Institute of Cost and Works Accountants of India who provide investment advice to their clients incidental to their professional services are exempted from obtaining registration under IA Regulations.
For example :- An advice by a professional CA as a tax consultant to his tax client for investing in ELSS in the course of tax planning will be treated as incidental to his profession as a tax consultant.
However, if they are engaged in providing investment advisory services in securities as an activity or business to clients or investors which is not incidental to their main activity then they are required to get registration as an investment adviser.
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@Karthik
Sir, kindly advise on this query
not confirmed yet, someone is saying yes its allowed but some are saying if you are in pratice not allowed to register as IA.
While SEBI does not prohibit a Chartered Accountant from registering as an Investment Advisor, CA Act, 1949 along with the CA Regulations, 1988 and Code of Ethics issued by ICAI, lay down certain conditions to be complied.
Please go through the following:
- Section 2(2)(iv) and Clause (11) of Part I of First Schedule to the CA Act,
- Clause 190A and 191 of the CA Regulations along with Appendix H to Code of Ethics, 2020,
- Recent Announcements by the Ethical Standards Board.
As far as what I could understand, a member in practice can provide investment counselling in respect of securities covered under Securities Contracts (Regulation) Act, 1956, without obtaining permission from the CA Council.
However, in respect of trading in securities, providing broking, underwriting and portfolio management services, it seems like such activities cannot be carried out without the prior approval of the Council.
The recent decisions of the Ethical Standards Board too, offer clarification in certain areas like in case of an equity research adviser, mutual fund distributor etc.
I have attached the relevant material for your reference. Please go through it, since what I have mentioned is just a gist and not comprehensive.
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Thanks, A really detailed and helpful explanation with links to all relevant resources.
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