Business
‘IAI’s Disciplinary Committee report can be precedent for ICAI, other institutes’
Is the remittance of part of the consultancy fee to the Insurance Regulatory and Development Authority of India (IRDAI) by an employee as per service condition a professional misconduct?
Yes says, a Disciplinary Committee set up by the Institute of Actuaries of India (IAI).
The IAI Disciplinary Committee’s decision would also have a bearing on the chartered accountants in a similar position as the Committee’s report was also signed by Uttam Agarwal, then President of Institute of Chartered Accountants of India (ICAI), said a senior accountant.
The ICAI has similar rules for professional misconduct.
K.Subrahmanyam, retired Executive Director (Actuary), IRDAI, has knocked the doors of Telangana High Court seeking justice against IAI Disciplinary Committee declaring him as guilty of professional misconduct.
He also wondered about the IRDAI’s silence on the issue after issuing him the permission in writing and accepting his remittance for several years.
The IAI’s Disciplinary Committee in 2021 had declared Subrahmanyam as guilty of professional misconduct.
The misconduct he was accused of is the payment of a part of his actuarial consulting fee to the IRDAI while in service between 2000-2011 as per his employment condition.
He was allowed to carry on actuarial consulting practice by the IRDAI subject to the condition that he remits 25 per cent of the consulting fees with the regulator.
“I carried on my consulting practice and remitted 25 per cent of the fee to IRDAI between 2000 and 2011,” Subrahmanyam told IANS.
“As a matter of fact, Subrahmanyam had consulted the Government of Nepal and Sri Lanka apart from others,” a retired senior IRDAI official told IANS preferring anonymity.
In 2017, six years after his retirement from IRDAI, Subrahmanyam got a shock as actuary N. Srinivasan made a complaint to IAI against him for professional misconduct – for remitting part of his fees to the IRDAI.
Incidentally, the IAI did not even consider the IRDAI’s former Chairman N. Rangachary’s communication clarifying the issue while setting up a Disciplinary Committee to proceed against Subrahmanyam.
In his letter to IAI President, Rangachary had said: “The ASI (Actuarial Society of India) which controlled your profession and consisted of very few members most of them in employment possibly outside India.”
The IRDAI was engaged seriously in seeing to it that a vibrant actuarial profession was functional. One such move was to permit some actuaries in employment to take up assignments in the area of attestation, he added.
Referring to the initiation of the disciplinary proceedings against, Rangachary said: “As Chairman of the authority (IRDAI) I had permitted him (Subrahmanyam) to engage himself in practice in a limited number of cases but subject to the regulations of the authority. Since there was an interchange between the regulator and the profession, both of whom were in the early growth stage, it was then prescribed that as is normally adopted by both the government and statutory bodies a small percentage was to be remitted to the employer.”
Nevertheless, the IAI Disciplinary Committee declared Subrahmanyam as guilty of misconduct under The Actuaries Act 2006 Section 31 Part I and sub section 2 which reads: “An Actuary in practice shall be deemed to be guilty of professional misconduct, if he pays by way of remuneration to an employee, pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of a deceased partner.”
The Chartered Accountants Act has an identical provision for professional misconduct.
“If a similar issue happens in another regulatory institution like ICAI, the same action will be taken. This is fortified by the ICAI President signing the IAI Disciplinary Committee report,” P.S.Prabhakar, President, Society of Auditors, told IANS.
Mumbai, Jan 1: India’s domestic benchmark indices closed higher on Wednesday amid muted global cues as buying was seen in auto, IT, PSU bank, financial service, pharma, FMCG, media, energy, and private bank sectors on the NSE.
Sensex ended at 78,507.41, up by 368.40 points, or 0.47 per cent, and Nifty settled at 23,742.90, up by 98.10 points or 0.41 per cent. Nifty Bank ended at 51,060.60, up by 200.40 points, or 0.39 per cent.
The Nifty Midcap 100 index closed at 57,450.90 after rising 251.45 points, or 0.44 per cent, while the Nifty Smallcap 100 index closed at 18,959.80 after rising 190.60 points, or 1.02 per cent.
On the Bombay Stock Exchange (BSE), 2,743 shares ended in green and 1,240 shares in red, whereas there was no change in 88 shares.
According to market experts, the market started on a positive note on the first day of 2025. The recovery was broad-based, while the sustainability of the trend will depend on the earnings growth in Q3, where the expectation is positive on a QoQ basis, they said.
An uptick in core sector data and the prospect of a ramp-up in capex spending by the government in the remaining part of the fiscal, aided by sectors like capital goods, industrials, auto, and power, they added.
On the sectoral front, metal, realty, and commodities were major losers.
In the Sensex pack, Maruti, M&M, L&T, Bajaj Finance, Tata Motors, Asian Paints, IndusInd Bank, Power Grid, and HDFC Bank were the top gainers. Tata Steel, Zomato, HCL Tech, and SBI were the top losers.
Foreign institutional investors (FIIs) sold equities worth Rs 4,645.22 crore on December 31, while domestic institutional investors bought equities worth Rs 4,546.73 crore on the same day.
Hyundai Motor India Limited (HMIL) achieved its highest-ever annual domestic sales of 6,05,433 units in calendar year 2024, marking a significant milestone for the brand. The total sales for the year, including both domestic and export volumes, reached 7,64,119 units.
In December 2024, HMIL reported monthly sales of 55,078 units, with 42,208 units sold domestically and 12,870 units exported. This performance highlights the company’s strong presence in both the Indian and global automotive markets.
Tarun Garg, Whole-time Director and Chief Operating Officer of Hyundai Motor India Limited, commented, “HMIL has successfully maintained its sales momentum in 2024, despite the challenging conditions faced by the industry. Achieving the highest-ever domestic sales for three consecutive years reflects customers’ trust in Hyundai as their preferred smart mobility solutions provider. The introduction of the innovative Hy-CNG Duo technology in 2024 was well received by buyers, resulting in the highest-ever CNG contribution of 13.1% to HMIL’s domestic sales in CY 2024, compared to 10.4% in CY 2023. Hyundai CRETA, with its highest-ever yearly domestic sales of 1,86,919 units, reinforced HMIL’s position as an SUV leader, contributing to the highest-ever domestic SUV share of 67.6% in CY 2024. We are confident that the upcoming CRETA Electric will further enhance the appeal of this undisputed, ultimate SUV.”
Hyundai Motor India Limited (HMIL) reported a slight decline in sales for December 2024, with total monthly sales reaching 55,078 units, marking a 2.4% decrease compared to December 2023. Domestic sales saw a marginal dip of 1.3%, totaling 42,208 units, while exports dropped by 6.1%, reaching 12,870 units. Despite these challenges, the company achieved a small growth in domestic sales for the full year, recording 6,05,433 units in CY 2024, up by 0.6% from the previous year. However, the total annual sales, including both domestic and export volumes, stood at 7,64,119 units, slightly lower by 0.2% compared to 7,65,786 units in CY 2023.
Mumbai, Jan 1: The domestic benchmark indices opened flat on Wednesday as selling was seen in auto, PSU bank, financial service, pharma and metal sectors on Nifty.
At around 9:35 am, Sensex was trading at 78,054.12 after declining 84.89 points or 0.11 per cent, while the Nifty was trading at 23,617.55 after declining 27.25 points or 0.12 per cent.
The market trend remained positive. On the National Stock Exchange (NSE), 1,538 stocks were trading in green, while 621 stocks were in red.
According to market experts, the New Year began on a sombre note for the Indian equity market.
“The near-term trend appears weak with the macro construct dominated by weak GDP and earnings growth,” they added.
Nifty Bank was down 46.65 points or 0.09 per cent at 50,813.55. Nifty Midcap 100 index was trading at 57,270.40 after rising 70.95 points or 0.12 per cent.
Nifty Smallcap 100 index was at 18,831.55 after rising 62.35 points or 0.33 per cent. On the sectoral front, buying was seen in the IT, FMCG, Media and Energy sectors on Nifty.
In the Sensex pack, Axis Bank, ICICI Bank, IndusInd Bank, Tata Steel, SBI, Nestle India, Tata Motors, M&M and Maruti Suzuki were among the top losers. Sun Pharma, Asian Paints, Bajaj Finserv, L&T, TCS, Tech Mahindra, HCL Tech and UltraTech Cement were among the top gainers.
The Dow Jones declined 0.07 per cent to close at 42,544.22. The S&P 500 declined 0.43 per cent to 5,881.60 and the Nasdaq declined 0.90 per cent to close at 19,310.79 in the previous trading session.
In the Asian markets, Jakarta and Hong Kong were trading in green. while China, Bangkok, Seoul and Japan were trading in red.
The headwinds from a strong dollar ( dollar index is at 108.5 per cent) and high U.S. bond yields will impact the market through more FII selling, at least in the early days of 2025.
“Even though FII selling is matched by DII buying, in this tug of war, in the near-term, sentiments are on the side of FIIs since valuations continue to be elevated,” said experts.
Investors should be cautious and watch for potentially market moving macro data, said experts.
Foreign institutional investors (FIIs) sold equities worth Rs 4,645.22 crore on December 31, while domestic institutional investors bought equities worth Rs 4,546.73 crore on the same day.
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