THE ACTUARIES ACT, 2006 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

INSTITUTE OF ACTUARIES OF INDIA 

3.  Incorporation of Institute. 
4.  Transfer of assets, liabilities, etc., of Actuarial Society. 
5.  Objects of Institute. 
6.  Entry of names in register. 
7.  Associates and fellows. 
8.  Honorary, affiliate and student members. 
9.  Certificate of practice. 
10.  Members to be known as Actuaries. 
11.  Disqualifications. 
12.  Composition of Council of Institute. 
13.  Annual general meetings. 
14.  Re-election to Council. 
15.  Settlement of dispute regarding election. 
16.  Establishment of Tribunal. 
17.  President, Vice-President and Honorary Secretary. 
18.  Resignation from membership and filling up to casual vacancies. 
19.  Functions of Council. 
20.  Staff, remuneration and allowances. 
21.  Committees of Council. 
22.  Finances of Council. 

CHAPTER III 

REGISTER OF MEMBERS 

23.  Register. 
24.  Removal of name from register. 
25.  Re-entry in register. 

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CHAPTER IV 

MISCONDUCT 

SECTIONS 

26.  Disciplinary Committee. 
27.  Appointment of Prosecution Director. 
28.  Authority, Council, Disciplinary Committee and Prosecution Director to have powers of civil 

court. 

29.  Action by Council on disciplinary Committee’s report. 
30.  Member to be afforded opportunity of being heard. 
31.  Professional or other misconduct defined. 

CHAPTER V 

APPEALS 

32.  Constitution of Appellate Authority. 
33.  Term of Office of Members of Authority. 
34.  Allowances, conditions of service of Members and procedure, etc., of Authority. 
35.  Officers and other staff of Authority. 
36.  Appeal to Authority. 

CHAPTER VI 

PENALTIES 

37.  Penalty for falsely claiming to be a member, etc. 
38.  Penalty for using name of Institution, awarding degrees of actuarial science, etc. 
39.  Companies not to engage in actuarial practice. 
40.  Unqualified person not to sign documents. 
41.  Offences by companies. 
42.  Sanction to prosecute. 

CHAPTER VII 

QUALITY REVIEW BOARD 

43.  Establishment of Quality Review Board. 
44.  Functions of Board. 
45.  Procedure of Board. 
46.  Terms and conditions of Chairperson and Members of Board. 
47.  Expenditure of Board. 

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CHAPTER VIII 
DISSOLUTION OF THE ACTUARIAL SOCIETY OF INDIA REGISTERED UNDER 
THE SOCIETIES REGISTRATION ACT 

SECTIONS 

48.  Dissolution of Actuarial Society of India. 
49.  Provisions respecting employees of dissolved society. 

CHAPTER IX 

MISCELLANEOUS 

50.  Maintenance of more than one offices by Actuary. 
51.  Reciprocity. 
52.  Power of Central Government to issue directions. 
53.  Protection of action taken in good faith. 
54.  Members, etc., to be public servants. 
55.  Power of Central Government to make rules. 
56.  Power to make regulations. 
57.  Power of Central Government to issue directions for making or amending regulations. 
58.  Laying of rules and regulations. 
59.  Power to remove difficulties. 

THE SCHEDULE. 

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THE ACTUARIES ACT, 2006 

ACT NO. 35 OF 2006 

An  Act  to  provide  for  regulating  and  developing  the  profession  of  Actuaries  and  for  matters 

connected therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-seventh Year of the Republic of India as follows:— 

[27th August, 2006.] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Actuaries Act, 2006. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

Provided that different dates may be appointed for different provisions of this Act and any reference 
in  any  such  provision  to  the  commencement  of  this  Act  shall  be  construed  as  a  reference  to  the 
commencement of that provision. 

2. Definitions.—(1) In this Act, unless the context otherwise requires,— 

(a)  "Actuary"  means  a  person  skilled  in  determining  the  present  effects  of  future  contingent 
events  or  in  finance  modelling  and  risk  analysis  in  different  areas  of  insurance,  or  calculating  the 
value  of  life  interests  and  insurance  risks,  or  designing  and  pricing  of  policies,  working  out  the 
benefits, recommending rates relating to insurance business, annuities, insurance and pension rates on 
the basis of empirically based tables and includes a statistician engaged in such technology, taxation, 
employees' benefits and such other risk management and investments and who is a fellow member of 
the Institute; and the expression "actuarial science" shall be construed accordingly; 

(b)  "Actuarial  Society"  means  the  Actuarial  Society  of  India  registered  under  the  Societies 
Registration  Act,  1860  (21  of  1860)  and  the  Bombay  Public  Trusts  Act,  1950  (Bombay  Act  No 
XXXIX of 1950); 

(c) "appointed day" means the date on which the Institute is constituted under sub-section (1) of 

section 3; 

(d) "Authority" means the Appellate Authority referred to in section 32; 

(e) "Board" means the Quality Review Board constituted under sub-section (1) of section 43; 

(f) "Council" means the Council of the Institute as referred to in section 12; 

(g) "fellow" means a fellow member of the Institute; 

(h) "Institute" means the Institute of Actuaries of India constituted under section 3; 

(i) "member" means an individual whose name appears in the register of members maintained by 

the Institute; 

(j) "prescribed" means prescribed by rules made under this Act; 

(k) "President" means the President of the Council; 

(l) "register" means the register of members maintained by the Institute under this Act; 

(m) "specified" means specified by regulations made under this Act; 

1. 10th November, 2006, vide notification No. S.O. 1912(E) dated 28th November, 2006, see Gazette of India, Extraordinary, 

Part II, sec. 3(ii) 

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(n) "Tribunal" means a Tribunal established under sub-section (1) of section 16; 

(o) ''Vice-President'' means the Vice-President of the Council; 

(p) "year" means the period commencing on the 1st day of April of any year and ending on the 

31st day of March of the succeeding year. 

(2)  Save  as  otherwise  provided  in  this  Act,  a  member  of  the  Institute  shall  be  deemed  "to  be  in 
practice" when individually or in partnership with Actuaries in practice as a member or an employee of a 
company, he, whether or not in consideration of remuneration received or to be received,— 

(i) engages himself in actuarial profession; or 

(ii) offers to perform or performs services involving the application of actuarial techniques in the 

fields of insurance, pension, investment, finance and management; or 

(iii) renders such other services as, in the opinion of the Council, are or may be rendered by an 

actuary in practice; or 

(iv) is in employment of a person engaged in one or more of the activities mentioned in clauses 

(i), (ii) and (iii) above, 

and  the  words  "to  be  in  practice"  with  their  grammatical  variations  and  cognate  expressions  shall  be 
construed accordingly. 

Explanation.—For  the  purposes  of  this  sub-section,  the  expression  "company"  includes  a  public 

financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956). 

CHAPTER II 

INSTITUTE OF ACTUARIES OF INDIA 

3. Incorporation of Institute.—(1) With effect from such date as the Central Government may, by 
notification  in  the  Official  Gazette,  appoint,  all  persons  whose  names  are  entered  in  the  register  of  the 
Actuarial Society at the commencement of this Act and all persons who may thereafter have their names 
entered in the register to be maintained under this Act, so long as they continue to have their names borne 
on the register, are hereby constituted a body corporate by the name of the Institute of Actuaries of India 
and all such persons shall be known as members of the Institute. 

(2) The Institute shall have perpetual succession and a common seal and shall have power to acquire, 

hold and dispose of property, both movable and immovable, and shall by its name sue or be sued. 

(3) The head office of the Institute shall be situated at such place as may be decided by the Central 

Government. 

4. Transfer of assets, liabilities, etc., of Actuarial Society.—On the appointed day,— 

(a) all the assets and liabilities of the Actuarial Society shall stand transferred to, and vested in, 

the Institute. 

Explanation.—The  assets  of  the  Actuarial  Society  shall  be  deemed  to  include  all  rights  and 
powers  and  all  properties,  whether  movable  or  immovable,  including,  in  particular,  cash  balances, 
deposits  and  all  other  interests  and  rights  in,  or  arising  out  of,  such  properties  as  may  be  in  the 
possession of the said Society and all books of account and other documents relating to the same; and 
liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind;  

(b) without prejudice to the provisions of clause (a), all debts, obligations and liabilities incurred, 
all contracts entered into and all matters and things engaged to be done by, with or for the Actuarial 
Society immediately before that day, for or in connection with the purpose of the said Society, shall 
be deemed to have been incurred, entered into or engaged to be done by, with or for, the Institute; 

(c) all sums of money due to the Actuarial Society immediately before that day shall be deemed 

to be due to the Institute; and 

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(d)  all  suits  and  other  legal  proceedings  instituted  or  which  could  have  been  instituted  by  or 
against the Actuarial Society immediately before that day may be continued or may be instituted by 
or against the Institute. 

5. Objects of Institute.—The objects of the Institute shall be— 

(a) to promote, uphold and develop the standards of professional education, training, knowledge, 

practice and conduct amongst Actuaries; 

(b) to promote the status of the Actuarial profession; 

(c) to regulate the practice by the members of the profession of Actuary; 

(d) to promote, in the public interest, knowledge and research in all matters relevant to Actuarial 

science and its application; and 

(e) to do all such other things as may be incidental or conducive to the above objects or any of 

them. 

6. Entry of names in register.—(1) Any of the following persons shall be entitled to have his name 

entered in the register, namely:— 

(a) any person who immediately before the appointed day was an associate or a fellow (including 

an honorary fellow) of the Actuarial Society; 

(b)  any  person  who  has  passed  the  examination  conducted  by  the  Actuarial  Society  and  has 
completed training either as specified by the said Society or as specified by the Council, except any 
such person who is not a permanent resident of India; 

(c)  any  person  who  has  passed  such  examination  and  completed  such  training,  as  may  be 

specified for membership of the Institute; 

(d) any person who has passed such other examination and completed such other training outside 
India as is specified as being equivalent to the examination and training specified under this Act for 
membership of the Institute: 

Provided that in the case of any person belonging to any of the classes mentioned in this sub-section 
who is not permanently residing in India, the Central Government or the Council may impose such further 
conditions as it may deem necessary or expedient in the public interest. 

(2) Every person mentioned in clause (a) of sub-section (1) may have his name entered in the register 

without the payment of any entrance fee. 

(3) Every person belonging to any of the classes mentioned in clauses (b), (c) and (d) of sub-section 
(1) shall have his name entered in the register on an application being made and granted in the specified 
manner and on payment of such fees, as may be specified. 

(4) The Council shall take such steps as may be necessary for the purpose of having the names of all 
persons belonging to the class mentioned in clause (a) of sub-section (1) entered in the register before the 
appointed day. 

(5)  Notwithstanding  anything  contained  in  this  section,  the  Council  may  confer  on  any  person 
honorary  fellow  membership,  if  the  Council  is  of  the  opinion  that  such  person  has  made  a  significant 
contribution to the profession of Actuary and thereupon the Council shall enter the name of such person 
in the register but such person shall not have any voting rights in any election or meetings of the Institute 
and shall not also be required to pay any fee to the Institute. 

7.  Associates  and  fellows.—(1)  The  members  of  the  Institute  shall  be  divided  into  two  classes 

designated respectively as associates and fellows. 

(2)  Any  person  other  than  a  person  to  whom  the  provisions  of  sub-section  (3)  apply,  shall,  on  his 
name  being  entered  in  the  register,  be  deemed  to  have  become  an  associate  and  as  long  as  his  name 
remains  so  entered,  shall  be  entitled  to  use  the  letters  "AIAI"  after  his  name  to  indicate  that  he  is  an 
associate. 

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(3)  Any  person  who  was  a  fellow  of  the  Actuarial  Society  and  who  is  entitled  to  have  his  name 
entered in the register under clause (a) of sub-section (1) of section 6 shall be entered in the register as a 
fellow. 

(4) Any person whose name is entered in the register as fellow shall, so long as his name remains so 

entered, be entitled to use the letters "FIAI" after his name to indicate that he is a fellow. 

8. Honorary, affiliate and student members.—(1) The Council may choose, in such manner as may 
be specified, any person of eminence in matters relating to and of interest to the profession of Actuary as 
an honorary member of the Institute provided that he is not practicing as an Actuary. 

(2) Any person, who is a fellow member, or is a holder of membership considered equivalent to the 
fellow  membership  of  the  Institute,  of  any  other  institution  similar  to  the  Institute,  whether  within  or 
outside India, may be admitted as an affiliate member for such period, and on such terms and conditions 
as may be specified. 

(3)  Any  person  who  enrolls  himself  for  examination  of  the  Institute,  and  possesses  such  academic 
qualifications as may be specified, may be admitted as a student member of the Institute on such terms 
and conditions as may be specified. 

(4) An honorary member or an affiliate member or a student member shall have no right to vote on 

any matter or resolution in any meeting of the Institute. 

9.  Certificate  of  practice.—(1)  No  member  of  the  Institute  shall  be  entitled  to  practice  unless  he 

fulfils the qualifications as may be specified and obtains from the Council a certificate of practice. 

(2) A member who desires to be entitled to practice shall make an application in such form and pay 
such annual fee for certificate of practice as may be specified and such fee shall be payable on or before 
the first day of April in each year. 

(3) The certificate of practice obtained under sub-section (1) may be cancelled by the Council under 

such circumstances as may be specified. 

10. Members to be known as Actuaries.—Every member of the Institute in practice shall, and any 
other member may, use the designation of an Actuary and no member using such designation shall use 
any other description whether in addition thereto or in substitution therefor: 

Provided  that  nothing  contained in  this section  shall be  deemed  to  prohibit  any  such  member  from 
adding  any  other  description  or  letters  to  his  name,  if  entitled  thereto,  to  indicate  membership  of  such 
other Institute, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any 
other qualification that he may possess, or to prohibit a firm, all the partners of which are members of the 
Institute and in practice, from being known by its firm name as Actuaries. 

11.  Disqualifications.—Notwithstanding  anything  contained  in  section  6,  a  person  shall  not  be 

entitled to have his name entered in, or borne on, the register if he— 

(a) has not attained the age of twenty-one years at the time of his application for the entry of his 

name in the register; or 

(b) is of unsound mind and stands so adjudged by a competent court; or 

(c) is an undischarged insolvent; or 

(d)  being  a  discharged  insolvent,  has  not  obtained  from  the  court  a  certificate  stating  that  his 

insolvency was caused by misfortune and without any misconduct on his part; or 

(e)  has  been  convicted  by  a  competent  court  whether  within  or  outside  India,  of  an  offence 
involving  moral  turpitude  and  punishable  with  imprisonment  or  of  an  offence,  not  of  a  technical 
nature, committed by him in his professional capacity unless in respect of the offence committed he 
has  either  been  granted  a  pardon  or,  on  an  application  made  by  him  in  this  behalf,  the  Central 
Government has, by an order in writing, removed the disqualification; or 

(f)  has  been  removed  from  the  membership  of  the  Institute  on  being  found  on  inquiry  to  have 

been guilty of a professional or other misconduct: 

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Provided that a person who has been removed from the membership for a specified period shall not be 

entitled to have his name entered in the Register until the expiry of such period. 

12.  Composition  of  Council  of  Institute.—(1)There  shall  be  a  Council  of  the  Institute  for  the 
management of the affairs of the Institute and for discharging the functions assigned to it by or under this 
Act. 

(2) The Council shall be composed of the following persons, namely:— 

(a) a  minimum  of  nine  and  not  more than  twelve  persons  from  amongst  fellow  members  to  be 
elected by the fellow and the associate members of the Institute in such manner as may be prescribed: 

Provided  that  a  fellow  of  the  Institute,  who  has  been  found  guilty  of  any  professional  or  other 
misconduct and whose name is removed from the Register or has been awarded penalty of fine, shall 
not be eligible to contest election,— 

(i)  in  case  of  misconduct  falling  under  the  Schedule  of  this  Act  [except  Part  IV(B)],  for  a 

period of three years; or 

(ii) in case of misconduct falling under Part IV(B) of the Schedule of this Act, for a period of 

six years, 

after the completion of the period of removal of name of the fellow from the Register or the payment 
of fine is made, as the case may be; and 

(b)  (i)  an  officer  not  below  the  rank  of  Joint  Secretary  to  the  Government  of  India,  to  be 

nominated by the Central Government to represent the Ministry of Finance; 

(ii) one person from the Insurance Regulatory and Development Authority constituted under the 
Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) nominated by the Central 
Government; and 

(iii) not more than two persons having knowledge in the field of life insurance, general insurance, 
finance,  economics,  law,  accountancy  or  any  other  discipline  which  in  the  opinion  of  the  Central 
Government, would be useful to the Council, to be nominated in such manner as may be prescribed: 

Provided that till such time as the Council is constituted under this Act, the Executive Committee of 

the Actuarial Society shall discharge all the functions and shall have all the powers of the Council. 

(3) No person holding a post under the Central Government or a State Government, as the case may 

be, shall be eligible for election to the Council under clause (a) of sub-section (2). 

(4) One-third of the members of the Council referred to in clause (a) of sub-section (2) shall retire as 

soon as may be on the expiration of every second year by rotation but shall be eligible for re-election. 

(5)  Any  person  nominated  under  clause  (b)  of  sub-section  (2)  shall  hold  office  for  a  period  of  six 
years from the date of his nomination unless he is removed earlier by the Central Government and shall 
be eligible for re-nomination: 

Provided that he shall be given an opportunity of being heard before such removal. 

13. Annual general meetings.—The Council shall every year hold an annual general meeting of the 
Institute to elect its members under clause (a) of sub-section (2) of section 12, or to discuss any matter 
which it deems fit, and not more than fifteen months shall elapse between the date of one annual general 
meeting of the Institute and that of the next: 

Provided that from the appointed day the Institute may hold its first annual general meeting within a 
period of not more than eighteen months and if such general meeting is held within that  period, it shall 
not be necessary for the Institute to hold any general meeting in that year: 

Provided  further  that  the  Central  Government  may,  for  sufficient  reasons,  extend  the  time  within 

which any general meeting shall be held. 

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14.  Re-election  to  Council.—(1)  Subject  to  the  provisions  of  sub-section  (2),  a  member  of  the 
Council elected under clause (a) of sub- section (2) of section 12 shall be eligible for re-election but not 
for more than two consecutive terms. 

(2) A member of the Council, who is or  has been elected, as the President under sub-section (1) of 

section 17, shall not be eligible for election or nomination as a member of the Council. 

15. Settlement of disputes regarding election.—In case of any dispute regarding any election under 
clause (a) of sub-section (2) of section 12, the aggrieved person may  make an application within thirty 
days from the date of the declaration of the result of the election to the Council which shall forward the 
same forthwith to the Central Government. 

16.  Establishment  of  Tribunal.—(1)  On  receipt  of  any  application  under  section  15,  the  Central 
Government  shall,  by  notification,  establish  a  Tribunal  consisting  of  a  Presiding  Officer  and  two  other 
Members to decide such dispute and the decision of such Tribunal shall be final. 

(2) A person shall not be qualified for appointment,— 

(a)  as  a  Presiding  Officer  of  the  Tribunal  unless  he  has  been  a  member  of  the  Indian  Legal 

Service and has held a post in Grade I of the service for at least three years; 

(b) as a Member unless he has been a member of the Council for at least one full term and who is 
not a sitting Member of the Council or who has not been a candidate in the election under dispute; 
and 

(c) as a Member unless he holds the post of a Joint Secretary to the Government of India or any 
other post under the Central Government carrying a scale of pay which is not less than that of a Joint 
Secretary to the Government of India. 

(3) The terms and conditions of service of the Presiding Officer and Members of the Tribunal, their 

place of meetings, remuneration and allowances shall be such as may be prescribed. 

(4) The expenses of the Tribunal shall be borne by the Council. 

17. President, Vice-President and Honorary Secretary.—(1) The Council shall, at its first meeting, 
elect three of its members from amongst persons referred to in clause (a) of sub-section (2) of section 12, 
to be respectively the President, Vice-President and Honorary Secretary thereof, and as often as the office 
of the President, Vice-President and Honorary Secretary falls vacant, the Council shall choose one of the 
member in the same manner: 

Provided  that  the  Chairperson  of  the  Council  of  the  Actuarial  Society  shall  continue  to  hold  such 
office as President after the commencement of this Act, until such time as a President is elected under the 
provisions of this sub-section. 

(2) The President shall be the Chief Executive Officer of the Council. 

(3) The President, the Vice-President or the Honorary Secretary shall hold office for a period of two 

years from the date on which he is chosen provided that he continues to be a member of the Council. 

(4) The President and the Vice-President shall, notwithstanding the expiration of his term, continue to 

hold office until his successor enters upon his office. 

(5) In the event of occurrence of any vacancy in the office of the President, the Vice-President shall 
act as the President until a new President is elected in accordance with the provisions of this section to fill 
such vacancy and enters upon his office. 

(6)  When  the  President  is  unable  to  discharge  his  functions  owing  to  absence,  illness  or  any  other 

cause, the Vice-President shall discharge his functions until the President resumes his duties. 

18.  Resignation  from  membership  and  filling  up  of  casual  vacancies.—(1)  Any  member  of  the 
Council may at any time resign his membership by writing under his hand addressed to the President, and 
the  seat  of  such  member  shall  become  vacant  when  such  resignation  is  accepted  and  notified  by  the 
Council. 

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(2) A member of the Council, other than a member nominated under clause (b) of sub-section (2) of 
section 12 shall be deemed to have vacated his seat if he is declared by the Council to have been absent 
without  sufficient reason from  three  consecutive  meetings  of  the  Council,  or  of  any  of  the  Committees 
constituted by the Council, and of which he is a member or he has been found guilty of any professional 
or  other  misconduct  and  awarded  penalty  of  fine  or  if  his  name  is,  for  any  cause,  removed  from  the 
register under the provisions of sections 24 and 30. 

(3) A casual vacancy in the office of a member of the Council shall be filled by fresh election or by 
nomination by the Central Government, as the case may be, and the person elected or nominated to fill the 
vacancy shall hold office only for the remainder of the term for which the member in whose place he was 
elected or nominated would have held that office: 

Provided that no election shall be held to fill a casual vacancy occurring within one year prior to the 

date of the expiration of the term of such member. 

(4) No act done by the Council shall be called in question on the ground merely of the existence of 

any vacancy in, or defect in the constitution of the Council. 

19. Functions of Council.—(1) The duty of carrying out the functions under the provisions of this 

Act shall be vested in the Council. 

(2) In particular and without prejudice to the generality of the foregoing power, the functions of the 

Council shall include— 

(a) the holding of examination of the candidates for enrolment and specifying fees therefor; 

(b) the specifying of qualifications for entry in the register; 

(c) the recognition of foreign qualifications and training for the purposes of enrolment; 

(d) the granting of or refusal to grant the certificate of practice under this Act; 

(e) the maintenance and publication of a register of persons qualified to practice as Actuaries; 

(f) the levy and collection of fees from members, students, examinees and other persons; 

(g) the removal of names from the register and the restoration to the register of names which have 

been removed; 

(h)  the  regulation  and  maintenance  of  the  status  and  standard  of  professional  qualifications  of 

members of the Institute; 

(i) to issue guidelines for the observance of the members, including the student members; 

(j) to receive gifts, grants, donations or benefactions from the Central or State Governments and 
to receive bequests, donations and transfer of movable or immovable properties from testators, donors 
or transferors, as the case may be; 

(k)  co-operating  with  educational  or  other  institutions  in  any  part  of  the  world  having  objects 
wholly  or  partly  similar  to  those  of  the  Institute  by  exchange  of  members  and  generally  in  such 
manner as may be conducive to achievement of their common objects; 

(l) instituting and awarding fellowships, scholarships, prizes and medals; 

(m) giving  gifts, grants, donations or benefactions to other institutions or bodies having objects 

similar to those of the Institute; 

(n)  the  carrying  out,  by  granting  financial  assistance  to  persons  other  than  members  of  the 

Council, or in any other manner, of research in the actuarial science; 

(o)  the  maintenance  of  a  library  and  publication  of  books,  journals  and  periodicals  relating  to 

actuarial science; 

(p) the exercise of disciplinary powers conferred by this Act; 

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(q) establishing such regional council or councils as may be decided from time to time and fixing 

their headquarters; and 

(r) doing all such things as may be necessary, incidental or conducive to the attainment of all or 

any of the objects of the Institute. 

20.  Staff,  remuneration  and  allowances.—(1)  For  the  efficient  performance  of  its  functions,  the 

Council may— 

(a) appoint an Executive Director, a Treasurer and such other officers and employees as it deems 

necessary and fix their salaries, fees, allowances and other conditions of service; and 

(b)  fix  the  allowances  of  the  President,  the  Vice-President,  the  Honorary  Secretary  and  other 

members of the Council and its Committees, in such manner as may be specified. 

(2)  The  Executive  Director  of  the  Council  shall  be  entitled  to  participate  in  the  meetings  of  the 

Council but shall not be entitled to vote thereat. 

21.  Committees  of  Council.—(1)  The  Council  may  constitute  such  committees  from  amongst  its 
members, and co-opt therein persons who are not members of the Institute, as it deems necessary for the 
purpose of carrying out the provisions of this Act: 

Provided that the number of co-opted members shall not exceed one-third of the total membership of 

the committee. 

(2) Every committee constituted under this section shall elect its own Chairman: 

Provided that— 

(i)  where  the  President  is  a  member  of  such  committee,  he  shall  be  the  Chairman  of  such 
committee, and in his absence, the Vice-President, if he is a member of such committee, shall be its 
Chairman; and 

(ii) where the President is not a member of such committee but the Vice-President is a member, 

he shall be its Chairman. 

(3)  The  committees  shall  exercise  such  functions  and  be  subject  to  such  conditions  as  may  be 

specified. 

22. Finances of Council.—(1) There shall be established a fund under the management and control 
of  the  Council  into  which  shall  be  paid  all  moneys  (including  donations  and  grants)  received  by  the 
Council and out of which shall be met all expenses and liabilities incurred by the Council. 

(2) The Council may invest any money for the time being standing to the credit of the fund in any 
security  as  it  may  deem  prudent consistent  with  the  considerations  of  security  of  such  investments  and 
maximum returns thereon. 

Explanation.—For  the  purposes  of  this  sub-section,  the  expression  "securities"  shall  have  the 
meaning  assigned  to  it  in  section  2  of  the  Securities  Contracts  (Regulation)  Act,  1956  (42  of  1956)  as 
amended from time to time. 

(3) The Council shall keep proper accounts of the fund distinguishing capital account from revenue 

account. 

(4) The annual accounts of the Institute shall be subject to audit by a Chartered Accountant in practice 
within the meaning of the Chartered Accountants Act, 1949 (38 of 1949) to be appointed annually by the 
Council: 

Provided  that  no  member  of  the  Council  who  is  a  Chartered  Accountant  or  a  person  who  is  in 

partnership with such member shall be eligible for appointment as an auditor under this sub-section. 

(5)  As  soon  as  may  be  practicable  at  the  end  of  each  year,  but  not  later  than  the  30th  day  of 
September of the year next following, the Council shall cause to be published in the Gazette of India, a 
copy of the audited accounts and the report of the Council for that year and copies of the said accounts 
and report shall be forwarded to the Central Government and to all the members of the Institute. 

11 

 
(6) The  Council  may  borrow  from  a  scheduled  bank,  as  defined in the  Reserve  Bank  of  India  Act, 

1934 (2 of 1934) or from any public financial institution— 

(a) any money required for meeting its liabilities on capital account on the security of the fund or 

on the security of any other asset, for the time being belonging to it; or 

(b)  for  the  purpose  of  meeting  current  liabilities,  pending  the  receipt  of  income,  by  way  of 

temporary loan or overdraft. 

Explanation.—The expression "public financial institution" means a financial institution specified in 

section 4A of the Companies Act, 1956 (1 of 1956). 

CHAPTER III 

REGISTER OF MEMBERS 

23. Register.—(1) The Council shall maintain in the specified manner a register of the members of 

the Institute. 

(2) The register shall include the following particulars about every member of the Institute, namely:— 

(a) his full name, date of birth, domicile, residential and professional addresses; 

(b) the date on which his name is entered in the register; 

(c) his qualifications; 

(d) whether he holds a certificate of practice; and 

(e) any other particulars which may be specified. 

(3) The Council shall cause to be published in such manner as may be specified a list of members as 
on the 1st day of April each year, and shall, if requested to do so by any such member, send him a copy of 
such list, on payment of such amount as may be specified. 

(4) Every member of the Institute shall, on his name being entered in the register, pay such annual 

membership fee as may be specified by the Council. 

24.  Removal  of  name  from  Register.—The  Council  may,  by  order,  remove  from  the  register  the 

name of any member of the Institute— 

(a) who is dead; or 

(b) from whom a request has been received to that effect; or 

(c) who has not paid any specified fee required to be paid by him; or 

(d) who is found to have been subject to, at the time when his name was entered in the register, or 
who at any time thereafter has become subject to, any of the disqualifications mentioned in section 
11; or 

(e) who for any other reason has ceased to be entitled to have his name borne on the register. 

25. Re-entry in register.—The Council may re-enter the name of a member whose name has been 
removed from the register for reasons mentioned in clauses (b), (c), (d) and (e) of section 24, by an order, 
and on paying such fees, and after satisfying such conditions and requirements as may be specified. 

12 

 
 
 
CHAPTER IV 

MISCONDUCT 

26. Disciplinary Committee.—(1) The Council shall constitute a Disciplinary Committee consisting 
of  the  President  or the Vice-President  of  the  Council  as  the  Presiding  Officer  and  two  members  of  the 
Council  elected  by  the  Council  and  two  members  to  be  nominated  by  the  Central  Government  from 
amongst the persons of eminence having experience in the field of law, education, economics, business, 
finance, accountancy or public administration: 

Provided  that  the  Council  may  constitute  more  regional  Disciplinary  Committees  as  and  when  it 

deems fit. 

(2) The Disciplinary Committee in making the inquiry under the provisions of this Act shall follow 

such procedure and submit the report to the Council within such time as may be prescribed. 

27.  Appointment  of  Prosecution  Director.—(1)  The  Council  may,  by  notification,  appoint  a 
Prosecution Director and such other employees to assist the Disciplinary Committee in making inquiries 
in respect of any information or complaint received by the Council under the provisions of this Act. 

(2) In order to make inquiries under the provisions of this Act, the Prosecution Director shall follow 

such procedure as may be prescribed. 

28.  Authority,  Council,  Disciplinary  Committee  and  Prosecution  Director  to  have  powers  of 
civil  court.—For  the  purposes  of  an  inquiry  under  the  provisions  of  this  Act,  the  Authority,  the 
Disciplinary Committee and the Prosecution Director shall have the same powers as are vested in a civil 
court under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) the discovery and production of any document; and 

(c) receiving evidence on affidavit. 

29. Action by Council on Disciplinary Committee's report.—(1) On receipt of a report from the 
Disciplinary  Committee,  if  the  Council  is  satisfied  that  the  member  of  the  Institute  is  guilty  of  any 
professional or other misconduct, it shall record its findings accordingly and shall proceed in accordance 
with the provisions of section 30. 

(2)  In  case  the  Council  is not  satisfied  with  the  report  of the  Disciplinary  Committee  and is  of the 
opinion  that  it  requires  further  inquiry,  it  may  refer  the  report  again  to  the  Disciplinary  Committee  for 
such further inquiry as may be directed through an order of the Council. 

(3)  If  the  Council  disagrees  with  the  findings  of  the  Disciplinary  Committee,  it  may  direct  the 

Prosecution Director or itself make an appeal to the Authority. 

30. Member to be afforded opportunity of being heard.—Where the Council is of the opinion that 
a member is guilty of a professional or other misconduct mentioned in the Schedule, it shall afford to the 
member a reasonable opportunity of being heard before making any order against him and may thereafter 
take any one or more of the following actions, namely:— 

(a) reprimand the member; or 

(b) remove the name of the member from the register permanently or for such period, as it thinks 

fit. 

(c) impose such fine as it may think fit, which may extend to five lakh rupees. 

Explanation.—For the purposes of this section, “member of the Institute” includes a person who was 
a member of the Institute on the date of the alleged misconduct although he has ceased to be a member of 
the Institute at the time of the inquiry. 

31.  Professional  or  other  misconduct  defined.—For  the  purposes  of  this  Act,  the  expression 
“professional  or  other  misconduct”  shall  be  deemed  to  include  any  act  or  omission  provided  in  the 
Schedule, but nothing in this section shall be construed to limit or abridge in any way the power conferred 

13 

 
or duty cast on the Disciplinary Committee or the Prosecution Director to inquire into the conduct of any 
member of the Institute under any other circumstances. 

CHAPTER V 

APPEALS 

32.  Constitution  of  Appellate  Authority.—The  Appellate  Authority  constituted  under  sub-section 
(1)  of  section  22A  of  the  Chartered  Accountants  Act,  1949  (38  of  1949),  shall  be  deemed  to  be  the 
Appellate Authority for the purposes of this Act subject to the modification that for clause (b) of said sub-
section (1), the following clause had been substituted, namely:— 

“(b) the Central Government shall, by notification, appoint two part-time Members from amongst 
the persons who have been members of the Council of the Institute of Actuaries for at least one full 
term and who are not sitting members of the Council;”. 

33. Term of office of Members of Authority.—A person appointed as a Member shall hold office 
for a term of three years from the date on which he enters upon his office or until he attains the age of 
sixty-seven years, whichever is earlier. 

34.  Allowances,  conditions  of  service  of  Members  and  procedure,  etc.,  of  Authority.—The 
provisions of section 22C, section 22D and section 22F of the Chartered Accountants Act, 1949 (38 of 
1949)  shall  apply  to  the  Authority  in  relation  to  allowances  and  terms  and  conditions  of  service  of  its 
Chairperson  and  members,  and  in  discharge  of  its  functions  under  this  Act  as  they  apply  to  it  in  the 
discharge of its functions under the Chartered Accountants Act, 1949. 

35. Officers and other staff of Authority.—(1) The Council shall make available to the Authority 
such officers and other staff members as may be necessary for the efficient performance of the functions 
of the Authority. 

(2) The salaries and allowances and conditions of service of the officers and other staff members of 

the Authority shall be such as may be specified. 

36. Appeal to Authority.—(1) Any member of the Institute  aggrieved by any order of the Council 
imposing  on  him  any  of  the  penalties  referred  to in  section  30,  may,  within  ninety  days  of  the  date  on 
which the order is communicated to him, prefer an appeal to the Authority: 

Provided that the Authority may entertain any such appeal after the expiry of the said period of ninety 

days, if it is satisfied that there was sufficient cause for not filing the appeal in time. 

(2) The Authority may, after calling for the records of any case, revise any order made by the Council 

under section 30 and may— 

(a) confirm, modify or set aside the order; 

(b) impose any penalty or set aside, reduce or enhance the penalty imposed by the order; 

(c)  remit  the  case  to  the  Disciplinary  Committee  for  such  further  inquiry  as  the  Authority 

considers proper in the circumstances of the case; or 

(d) pass such other order as the Authority thinks fit: 

Provided that the Authority shall give an opportunity of being heard to the parties concerned before 

passing any order. 

CHAPTER VI 

PENALTIES 

37. Penalty for falsely claiming to be a member, etc.—Subject to the provisions of section 10, any 

person who,— 

(a) not being a member of the Institute,— 

(i) represents that he is a member of the Institute in any of the manners mentioned in section 

7; or 

14 

 
(ii) uses the designation "Actuary"; or 

(iii) uses the letters "AIAI" or "FIAI" after his name; or 

(iv) practises the profession of an Actuary; or 

(b) being a member of the Institute, but not having a certificate of practice, represents that he is in 

practice, or practises as an Actuary, 

shall  be  punishable  on  first  conviction  with  fine  which  may  extend  to  one  lakh  rupees,  and  on  any 
subsequent conviction with imprisonment which may extend to one year, or with fine which may extend 
to two lakh rupees, or with both. 

38. Penalty for using name of Institution, awarding degrees of actuarial science, etc.—(1) Save 

as otherwise provided in this Act, no person shall— 

(a)  use  a  name  or  a  common  seal  which  is  identical  with  the  name  or  the  common  seal  of  the 

Institute or so nearly resembles it so as to deceive or as is likely to deceive the public; or 

(b)  award  any  degree,  diploma  or  certificate  or  bestow  any  designation  which  indicates  or 
purports  to  indicate  the  position  or  attainment  of  any  qualification  or  competence  in  actuaryship 
similar to that of a member of the Institute; or 

(c) seek to regulate in any manner whatsoever the profession of Actuaries. 

(2)  Any  person  contravening  the  provisions  of  sub-section (1)  shall,  without  prejudice  to  any  other 
proceedings,  which  may  be  taken  against  him,  be  punishable  with  fine,  which  may  extend  on  first 
conviction  to  fifty  thousand  rupees  and  on  any  subsequent  conviction  with  imprisonment  which  may 
extend to one year, or, with fine which may extend to one lakh rupees, or with both. 

(3) Nothing contained in this section shall apply to any University or other institution established by 

law or to any body affiliated to the Institute. 

39.  Companies  not  to  engage  in  actuarial  practice.—(1)  No  company,  whether  incorporated  in 

India or elsewhere, shall practice as Actuaries. 

(2)  Any  company  contravening  the  provisions  of  sub-section  (1)  shall  be  punishable  on  first 
conviction  with  fine  which  may  extend  to ten  thousand  rupees,  and  on  any  subsequent conviction  with 
fine which may extend to twenty-five thousand rupees. 

40. Unqualified person not to sign documents.—(1) No person other than a fellow member of the 
Institute shall sign any document on behalf of an Actuary in practice or a firm of such Actuaries in his or 
its professional capacity. 

(2)  Any  person  contravening  the  provisions  of  sub-section (1)  shall,  without  prejudice  to  any  other 
proceedings  which  may  be  taken  against  him,  be  punishable  on  first  conviction  with  fine  which  may 
extend to fifty thousand rupees, and on any subsequent conviction with imprisonment which may extend 
to one year, or with fine which may extend to one lakh rupees, or with both. 

41. Offences by companies.—(1) If the person committing an offence under this Act is a company, 
the company as well as every person in charge of, and responsible to, the company for the conduct of its 
business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall 
be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment if he proves that the offence was committed without his knowledge or that he had exercised 
all due diligence to prevent the commission of such offence. 

15 

 
 
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance  of,  or  that  the  commission  of  the  offence  is  attributable  to  any  neglect  on  the  part  of,  any 
director,  manager, secretary  or  other  officer  of  the  company,  such  director,  manager,  secretary  or other 
officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and 
punished accordingly. 

Explanation.—For the purposes of this section— 

(a) "company" means any body corporate and includes a firm or other association of individuals; 

and 

(b) "director", in relation to a firm, means a partner in the firm. 

42.  Sanction  to  prosecute.—No  person  shall  be  prosecuted  under  this  Act  except  on  a  complaint 

made by or under the order of the Council or of the Central Government. 

CHAPTER VII 

QUALITY REVIEW BOARD 

43. Establishment of Quality Review Board.—(1) The Central Government shall, by  notification, 

constitute a Quality Review Board consisting of a Chairperson and not more than four Members: 

Provided that in case the Board is constituted with two Members, one each shall be nominated by the 

Council and the Central Government, respectively. 

(2)  The  Chairperson  and  Members  of  the  Board  shall  be  appointed  from  amongst  the  persons  of 
eminence having experience in the field of law, education, economics, business, finance, accountancy or 
public administration. 

(3) Two Members of the Board shall be nominated by the Council and other two Members shall be 

nominated by the Central Government. 

44. Functions of Board.—The Board shall perform the following functions, namely:— 

(a) to fix standards for the services provided by the members of the Institute; 

(b) to review the quality of services provided by the members of the Institute including actuarial 

audit services; and 

(c) to guide the members of the Institute to improve the quality of services and adherence to the 

various statutory and other regulatory requirements. 

45.  Procedure  of  Board.—The  Board  shall  follow  in  its  meeting  and  in  discharging  its  functions 

such procedure as may be prescribed. 

46. Terms and conditions of Chairperson and Members of Board.—The terms and conditions of 
service  of  the  Chairperson  and  the  Members  of  the  Board,  their  place  of  meetings,  remuneration  and 
allowances shall be such as may be prescribed. 

47. Expenditure of Board.—The expenditure of the Board shall be borne by the Council. 

CHAPTER VIII 

DISSOLUTION OF THE ACTUARIAL SOCIETY OF INDIA REGISTERED UNDER THE SOCIETIES 
REGISTRATION ACT 

48. Dissolution of Actuarial Society of India.—On the appointed day,—  

(a) the Society known as the Actuarial Society of India registered under the Societies Registration 
Act, 1860 (21 of 1860) and the Bombay Public Trusts Act, 1950 (Bombay Act XXXIX of 1950) shall 
stand  dissolved  and  thereafter  no  person  shall  make,  assert  or  take  any  claims  or  demands  or 
proceedings against the dissolved society or against any officer thereof in his capacity as such officer 
except in so far as may be necessary, for enforcing the provisions of this Act; 

16 

 
(b) the right of every member to, or in respect of, the dissolved society shall be extinguished, and 
thereafter no member of the society shall make, assert or take any claims or demands or proceedings in 
respect of that society except as provided in this Act. 

49.  Provisions  respecting  employees  of  dissolved  society.—(1)  Every  person  employed  in  the 
dissolved  society  and  continuing  in its  employment  immediately  before the commencement  of this  Act 
shall, as from such commencement, become an employee of the Institute, shall hold his office or service 
therein  by  the  same  tenure  and  upon  the  same  terms  and  conditions  and  with  the  same  rights  and 
privileges as to retirement benefits as he would have held the same under the dissolved society if this Act 
had  not  been  passed,  and  shall,  continue  to  do  so  unless  and  until  his  employment  in  the  Institute  is 
terminated  or  until  his  remuneration,  terms  and  conditions  of  employment  are  duly  altered  by  the 
Institute. 

(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947) or in any 
other law for the time being in force, the transfer of the services of any employee of the dissolved society 
to the Institute shall not entitle any such employee to any compensation under that Act or other law, and 
no such claims shall be entertained by any court, tribunal or other authority. 

CHAPTER IX 

MISCELLANEOUS 

50. Maintenance of more than one offices by Actuary.—(1) Where an Actuary in practice or a firm 
of such Actuaries has more than one offices within or outside India, each one of such offices shall be in 
the separate charge of a fellow member of the Institute: 

Provided  that  the  Council  may  in  suitable  cases  exempt  any  Actuary  in  practice  or  firm  of  such 

Actuaries from the operation of this sub-section. 

(2) Every Actuary in practice or a firm of such Actuaries maintaining more than one office shall send 
to the Council a list of offices and the person in charge thereof and shall keep the Council informed of any 
changes in relation thereto. 

51. Reciprocity.—(1) Where any country, notified by the Central Government in this behalf in the 
Official Gazette, prevents persons of Indian domicile from becoming members of any institution similar 
to the Institute or from practicing the profession of Actuaries or subjects them to unfair discrimination in 
that  country,  no  subject  of  any  such  country  shall  be  entitled  to  become  a  member  of  the  Institute  or 
practice the profession of Actuaries in India. 

(2) Subject to the provisions of sub-section (1), the Council may specify the conditions, if any, subject 
to which foreign qualifications relating to actuarial science shall be recognised for the purposes of entry in 
the register. 

52.  Power  of  Central  Government  to  issue  directions.—(1)  For  the  purposes  of  this  Act,  the 
Central Government may, from time to time, give to the Council such general or special directions as it 
thinks  fit,  and  the  Council  shall,  in  the  discharge  of  its  functions  under  this  Act,  comply  with  such 
directions. 

(2) If, in the opinion of the Central Government, the Council has persistently made default in giving 
effect to the directions issued under sub-section (1), it may, after giving an opportunity of being heard to 
the  Council,  by  notification,  dissolve  the  Council,  whereafter  a  new  Council  shall  be  constituted  in 
accordance with the provisions of this Act with effect from such date as may be decided by the Central 
Government. 

(3)  Where  the  Central  Government  has  issued  a  notification  under  sub-section  (2)  dissolving  the 
Council, it may, pending the constitution of a new Council in accordance with the provisions of this Act, 
authorise any person or body of persons to take over the management of the affairs of the Council and to 
exercise such functions as may be mentioned in the notification. 

53. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie against the Central Government or the Council or the Disciplinary Committee or the Tribunal or the 
Authority  or  the  Board  or  the  Prosecution  Director  or  any  officer  of  that  Government,  Council, 

17 

 
Committee, Tribunal, Authority or Board, for anything which is in good faith done or intended to be done 
under this Act or any rule, regulation, notification, direction or order made thereunder. 

54. Members, etc., to be public servants.—The Chairperson, Presiding Officer, Members and other 
officers  and  employees  of  the  Authority,  Tribunal  and  Board,  and  the  Prosecution  Director  shall  be 
deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

55.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  by 

notification, make rules to carry out the provisions of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the manner of election and nomination in respect of members to the Council under sub-section 

(2) of section 12; 

(b) the terms and conditions of service of the Presiding Officers and Members of the Tribunal, 
place of meeting, remuneration and allowances to be paid to them under sub-section (3) of section 16; 

(c) the procedure of inquiry and submission of report by the Disciplinary Committee under sub-

section (2) of section 26; 

(d) the procedure of inquiry by the Prosecution Director under sub-section (2) of section 27; 

(e) any act or omission which may be determined as professional misconduct under section 31; 

(f) the procedure to be followed by the Board in its meetings and discharging its functions under 

section 45; and 

(g) terms and conditions of service of the Chairman and Members of the Board under section 46. 

56. Power to make regulations.—(1) The Council may, with the previous approval of the Central 
Government  and  subject  to  the  previous  publication,  by  notification  in  the  Official  Gazette,  make 
regulations to carry out the provisions of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a) the examination and training for the purposes of clauses (b), (c) and (d) of sub-section (1) of 

section 6; 

(b) the manner of making an application under sub-section (3) of section 6; 

(c) the fees payable under sub-section (3) of section 6, sub-section (2) of section 9, clause (a) of 

sub-section (2) of section 19, sub-section (4) of section 23; 

(d) the manner in which the honorary member may be chosen under sub-section (1) of section 8; 

(e) the terms and conditions on which an affiliate member may be admitted under sub-section (2) 

of section 8; 

(f) the academic qualifications for admission of a student member under sub-section (3) of section 

8; 

(g) qualifications required for a certificate of practice under sub-section (1) and the form in which 

an application may be made under sub-section (2) of section 9; 

(h) the transaction of business by the Council for the discharge of its functions mentioned in sub-

section (2) of section 19; 

(i) terms and conditions of the services under sub-section (1) of section 20; 

(j) the functions and conditions of the committees under sub-section (3) of section 21; 

(k) the manner in which the register of the members of the Institute and other particulars to be 

maintained under sub-sections (1) and (2) of section 23; 

18 

 
(l) the manner in which the annual list of members of the Institute may be published under sub-

section (3) of section 23; 

(m) the conditions and requirements and payment of fee for re-entry in the register under section 

25; 

(n) salaries and allowances and conditions of service of the officers and other staff members of 

the Authority under sub-section (2) of section 35; 

(o) the conditions subject to which foreign qualifications may be recognised under sub-section (2) 

of section 51; and 

(p) any other matter which is required to be, or may be, prescribed under this Act. 

57. Power of Central Government to issue directions for making or amending regulations.—(1) 
Where  the  Central  Government  considers  it  expedient  so  to  do,  it  may,  by  order  in  writing,  direct  the 
Council to make any regulations or to amend or revoke any regulations already made within such period 
as it may specify in this behalf. 

(2) If the Council fails or neglects to comply with such order within the specified period, the Central 

Government may itself make the regulations or amend or revoke the regulations made by the Council. 

58. Laying of rules and regulations.—Every rule and every regulation made under this Act shall be 
laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total 
period of thirty days which may be comprised in one session or in two or more successive sessions, and 
if, before the expiry of the session immediately following the session or the successive sessions aforesaid, 
both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule 
or regulation should not be made, the rule or regulation shall, thereafter have effect only in such modified 
form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be 
without prejudice to the validity of anything previously done under that rule or regulation. 

59. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not inconsistent with the provisions of this Act, as may appear to be necessary for removing the difficulty: 

Provided that no such order shall be made under this section after the expiry of a period of two years 

from the commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

19 

 
 
THE SCHEDULE 

(See section 31) 

PART I 

Professional misconduct in relation to members of the Institute in practice 

An Actuary in practice shall be deemed to be guilty of professional misconduct, if he— 

(1) allows any person to practice in his name as an actuary unless such person is also an actuary 

in practice and is in partnership with or employed by himself; or 

(2)  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; or 

(3) enters into partnership with any person other than an Actuary in practice or a person resident 
outside India who but for his residence abroad would be entitled to be admitted as a member under 
clause  (c)  of  sub-section  (1)  of  section  6  or  whose  qualifications  are  recognised  by  the  Central 
Government  or  the  Council  for  the  purpose  of  permitting  such  partnership,  provided  the  Actuary 
shares in the fees or profits of the business of the partnership both within and outside of India; or 

(4)  secures  either  through  the  services  of  a  person  who  is  not  an  employee  of  such  Actuary  or 
who is not qualified to be his partner or by means which are not open to an Actuary, any professional 
business; or 

(5)  accepts  an  assignment  as  Actuary  previously  held  by  another  Actuary  without  first 

communicating with him in writing; or 

(6)  charges  or  offers  to  charge,  accepts  or  offers  to  accept  in  respect  of  any  professional 
employment fees which are based on a percentage of profit or which are contingent upon the findings 
or results of such employment, except as permitted under any regulation made under this Act; or 

(7) engages in any business or occupation other than the profession of Actuaries unless permitted 

by the Council so to engage: 

Provided  that  nothing  contained  herein  shall  disentitle  an  Actuary  from  being  a  director  of  a 

company; or 

(8)  accepts  a  position  as  an  actuary  previously  held  by  some  other  Actuary  in  practice  in  such 

conditions as to constitute undercutting; or 

(9) allows a  person  not  being  a  member  of  the  Institute in  practice,  or  a  member  not  being  his 

partner to sign on his behalf or on behalf of his firm, any valuation report or financial statement; or 

(10)  discloses information acquired  in the course  of  his  professional  engagement  to  any  person 
other than his client so engaging him, without the consent of such client, or otherwise than as required 
by any law for the time being in force; or 

(11) certifies or submits in his name, or in the name of his firm, a valuation report or a financial 
statement unless the examination of such statement and the related records has been made by him or 
by a partner or an employee in his firm or by another Actuary in practice; or 

(12)  expresses  his  opinion  or  valuation  reports  or  financial  statements  of  any  business  or  any 
enterprise  in  which  he,  his  firm,  or  a  partner  in  his  firm  has  a  substantial  interest,  unless  he  has 
disclosed the interest also in his report; or 

(13) fails to disclose a material fact known to him in a valuation report or a financial statement, 
but  disclosures  of  which  is  necessary  to  make  the  valuation  report  or  the  financial  statement  not 
misleading  where  he  is  concerned  with  such  valuation  report  or  the  financial  statement  in  a 
professional capacity; or 

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(14)  fails  to  report  a  material  misstatement  known  to  him  to  appear  in  a  valuation  report  or 

financial statement with which he is concerned in a professional capacity; or 

(15) is grossly negligent in the conduct of his professional duties; or 

(16) fails to obtain sufficient information to warrant the formation of an opinion in regard to any 

matter contained in any valuation report or financial statement prepared by him or on his behalf; or 

(17) fails to invite attention to any material departure from the generally accepted procedure or 
professional  work  applicable  to  the  circumstances,  in  any  valuation  report  or  financial  statement 
prepared by him or on his behalf. 

PART II 

Professional misconduct in relation to the members of the Institute in service 

A  member  of  the  Institute  (other  than  a  member  in  practice)  shall  be  deemed  to  be  guilty  of 

professional misconduct, if he being an employee of any company, firm or person,— 

(1)  pays  or  allows  or  agrees  to  pay  directly  or  indirectly  to  any  person  any  share  in  the 

emoluments of the employment undertaken by him; or 

(2)  accepts  or  agrees  to  accept  any  part  of  fees,  profits  or  gains  by  way  of  commission  or 

gratification; or 

(3)  discloses  confidential  information  acquired  in  the  course  of  his  employment  except  as  and 

when required by law or except as permitted by his employer. 

PART III 

Professional misconduct in relation to members of the Institute generally 

A  member  of  the  Institute,  whether in  practice  or  not,  shall  be  deemed  to  be  guilty  of  professional 

misconduct, if he— 

(1)  includes  in  any  statement,  return  or  form  to  be  submitted  to  the  Council  any  particulars 

knowing them to be false; or 

(2) not being a fellow member of the Institute acts himself as a fellow member of the Institute; or 

(3) does not supply the information called for or does not comply with the requirements asked for 

by the Council or any of its Committees; or 

(4)  contravenes  any  of  the  provisions  of  this  Act  or  the  regulations  made  thereunder  or  any 

guidelines issued by the Council under clause (i) of sub-section (2) of section 19; or 

(5) is guilty of such other act or omission as may be specified by the Council. 

Other misconduct in relation to member of the Institute generally 

PART IV 

A  member  of  the  Institute,  whether  in  practice  or  not,  shall  be  deemed  to  be  guilty  of  other 

misconduct, if— 

(A) (1)  he  is  held  guilty  by  any  civil  or criminal court for  an  offence  which  is punishable  with 

imprisonment for a term not exceeding six months; 

(2) in the opinion of the Council, he brings disrepute to the profession or the Institute as result of 

his action whether or not related to his professional work; 

(B)  he  is  held  guilty  by  any  civil  or  criminal  court  for  an  offence  which  is  punishable  with 

imprisonment for a term exceeding six months. 

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