Advocate's act
A P Singh
(Querist) 08 December 2013
This query is : Resolved
Dear Sirs,
Can a part time lady lawyer who mainly does drafting/conveyancing and property legal consultation work etc engage in intraday ,short term and long term share trading in her mainly free time as her second part time profession or business? Would it be proper from the ethical point of view. What does Advocate's Act say? Kindly Guide
Thanks in advance
Devajyoti Barman
(Expert) 08 December 2013
No, she can not get engaged in another trade except legal profession.
R.K Nanda
(Expert) 08 December 2013
she cannot do it.
prabhakar singh
(Expert) 08 December 2013
Investing in shares(long or short term) ,in my opinion ,cannot be treated to be such a work that advocate would be failing to discharge his duties as an advocate.Intra day trades might be as it may attract whole day involvement.
A P Singh
(Querist) 08 December 2013
Respected Sirs,
I see some difference of opinion .If a legal professional is finding it hard to make ends meet by legal earning and is free for significant part of the year does he have to give up work of legal nature and then persue another part time business/profession? If he is not attending courts but merely providing consultation, title search, conveyancing etc is he still barred from taking up share trading for 30-60 days in a year?
I request a reasoned answer.
Guest
(Expert) 08 December 2013
If she is going to do the Trading only for herself there would not be any objection.She should not be a sub-broker or she should not be working for any broker firm
Rajendra K Goyal
(Expert) 09 December 2013
Agree with the views of expert prabhakar singh ji and narasimha ji. Doing share trading as investment / investor is not business.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 09 December 2013
Share trading is not business and even if you buy sale every day still it can not be against ethics.
The legal profession on one hand is termed as noble profession but the advocate has to bear the burnt of all the evils of the legal system and no assured regular income even for the top most.
So every legal professional must learn this art of taking profits from investing . It is perfect method for financial security provided one can master the system.
A P Singh
(Querist) 09 December 2013
Dear Friends,
It would help our cause and give way to liberal thinking and interpretation of Advocates Act if more legal professionals give their opinion especially seniors.
Thanks in advance
Raj Kumar Makkad
(Expert) 09 December 2013
Trading of shares for himself do not constitute a business but if a lawyer adopt this trading for earning his commission then it shall definitely do constitute a business which is not permissible under Advocates Act, 1961.
malipeddi jaggarao
(Expert) 10 December 2013
Shri Rajkumar makkad has summed up the opinions.
A P Singh
(Querist) 10 December 2013
Respected Sirs/Friends,
But the income tax dept. treats income from trading in derivatives/FNO segment, which is very much part of the share market, as business income by virtue of the amended sec 43(5) of the income tax act. So is it that a lawyer cannot trade in derivatives while he can do short or long term trading in equity without violating the spirit of the Advocates Act.
OR is it that a Lawyer can do derivatives trading also without violating the Advocates Act if he is trading for himself/herself only and not doing it for commission.
Please do guide as we have to be aware of all the angles in this matter.
Thanks in advance.
Raj Kumar Makkad
(Expert) 26 January 2014
Income tax department is free in calculation if such income has been earned but Advocates Act, 1961 makes such person disqualified as an Advocate if Bar Council takes stern action thereupon.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 27 January 2014
All queries with THANKS IN ADVANCE captions are from more arrogant persons who wants to show off their knowledge.
And as a rule you will reply that you are not from the MOST ARROGANT CLASS hence the reply.
Advocates act was framed when derivative trade was not popular in India. Now even IT dept is not able to fully track it.
They act only when large credits or debits are shown in bank accounts.
So you cross the bridge when it comes before you.
A P Singh
(Querist) 27 January 2014
Dear Makkad sir,
Could you please explain your reply. Earlier you replied that trading in share market can be done for self but in your later reply you said that an advocate can be disqualified by the bar council for trading in the share market.
