Dear all,

I am an Advocate enrolled at Bar Council of Delhi for last 5 years. I understand that the Bar Council Rules places restrictions on Advocates to engage in business activities.

My question relates to purchasing shares of companies. The questions are that as an Advocate can I:-

1. Purchase shares of a publicly company listed on Bombay Stock Exchange?

2. Purchase shares of a Private Ltd. company in which I am neither a DIRECTOR nor have any dealings with the management of the company?

Attention is drawn to the following restrictions of the Bar Council including Chapter II rules 47 and 48, which says-

Chapter II

47. 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.

48. 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.

My question is simple. As an Advocate, can I invest money and purchase share of a Pvt. company limited by shares in light of the restrictions imposed on the Bar Council to practicing Advocates?

“47. An advocate shall not personally engage in any business”

Of course, in most of the cases, the shares of a Pvt company limited by shares are purchased in return of investment into the company. My question is whether such an activity is in contravention of said rule 47?

Thanks in advance.

Kshitij Malhotra