CA in practice allowed to do Derivative transactions if done in individual capacity
Ethical Standards Board (ESB) had issued a reply to a query asked on transactions in derivatives is trading and as such not permissible for chartered accountants in practice (PCA).
It has been noticed that many chartered accountants are making investment transactions in derivatives. Therefore, this subject was taken before the Ethical Standards Board (ESB) of the ICAI. The Council is allowed to permit activities that are anciliary to profession for PCA. It was viewed that CA curriculum includes this topic, it calls for utilising knowledge in finance, company law, etc. to invest in derivatives. Investment in shares and securities. Derivative is a kind of security. Therefore, it is incorrect to say that transactions in derivatives is not permissible.
You will be happy to note that the ESB and Council has passed an Item that:
Derivative transactions are not business activity and would therefore not be deemed as prohibited from the standpoint of members in practice undertaking the said activity in their individual capacity (and not in a professional capacity).
However trading in commodity derivative is not permissible.