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Q. Regarding share market..

Q.Regarding share market..
1) Can practicing Advocate open DEMATE & TRADING account in BSE, NSE to buy/ sell shares in share market in free time ??
Because
A) Rule 47 & 52 are confusing about the same.
B) Some people say yes some no , some say it is not business etc..

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Ashish K Dongre

Experience: 12 Year(s)

Responded 11 months ago

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A. ) You can, don't worry.

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Deepak Yashwantrao Bade

Experience: 9 Year(s)

Responded 11 months ago

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A. ) Dear sir you can invest your money into share market with demat account. Or simply you can invest through mutual funds in you don't want demat procedure.

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ROBERT D ROZARIO

Experience: 15 Year(s)

Responded 11 months ago

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A. ) Rules 47 to 52 of Section VII of the rules deals with restrictions on other employments. This restriction is considered as a general etiquette on the part of lawyers as the profession of law is a noble profession and requires full time dedication.

Rule 47 provides that an advocate shall not personally engage in any business; but he may be a sleeping partner in a firm doing business provided that in the opinion of the appropriate State Bar Council, the nature of the business is not inconsistent with the dignity of the profession.

Rule 52 states that nothing in these rules shall prevent an advocate from accepting after obtaining the consent of the State Bar Council, part-time employment provided that in the opinion of the State Bar Council, the nature of the employment does not conflict with his professional work and is not inconsistent with the dignity of the profession. This rule shall be subject to such directives if any as may be issued by the Bar Council India from time to time. Teaching of law for not more than three hours a day is considered as a part-time employment.

Rule 48 makes it very clear that an advocate may be Director or Chairman of the Board of Directors of a company with or without any ordinarily sitting fee, provided none of his duties are of an executive character. An advocate shall not be a Managing Director or a Secretary of any company. If the functions of the advocate as a member of the Board of Directors is in case executive in nature, then that action would be against rule 48. An advocate cannot run any business personally and earn a profit. Rule 47 strictly prohibits that.

Under Rule 49 of the Bar Council of India Rules, an advocate shall not be a full-time employee of any person, Government, firm, corporation or concern and on taking up such employment, shall intimate such fact to the Bar Council concerned and shall cease to practise as long as he is in such employment. However, there was an exception made in such cases of law officers of the Government and corporate bodies despite his being a full- time salaried employee if such law officer was required to act or plead in court on behalf of others. It was only to those who fall into other categories of employment that the bar under Rule 49 would apply[1]. An advocate employed by the Government or a body corporate as its law officer even on terms of payment of salary would not cease to be an advocate in terms of Rule 49 if the condition is that such advocate is required to act or plead in courts on behalf of the employer. But this exception were deleted in June, 2001 meeting vide Resolution No.65/2001[2].

The test, therefore, is not whether such person is engaged on terms of salary or by payment of remuneration, but whether he is engaged to act or plead on its behalf in a court of law as an advocate. In that event the terms of engagement will not matter at all. What is of essence is as to what such law officer engaged by the Government does - whether he acts or pleads in court on behalf of his employer or otherwise. If he is not acting or pleading on behalf of his employer, then he ceases to be an advocate. If the terms of engagement are such that he does not have to act or plead, but does other kinds of work, then he becomes a mere employee of the Government or the body corporate. Therefore, the Bar Council of India has understood the expression "advocate" as one who is actually practicing before courts which expression would include even those who are law officers appointed as such by the Government or body corporate.

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Rameshwar Dadhe

Experience: 2 Year(s)

Responded 11 months ago

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A. ) By advocate Rameshwor dadhe dear sir yes you can open it . because it's not buissnes it's only investment

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