The Actuaries Act, 2005. The Bihar Appropriation (Vote on Account) Act, 2005. The Bihar Appropriation Act, 20…

REGISTERED NO . DL-(N)04/0007/2003-05 रजिस्ट्री सं० डी० एल ०(एन) 04/0007/2003-05

भारत को राजपत्र The Gazette ofIndia

असाधारण

EXTRAORDINARY

खण्ड 2

भाग II

PART II- Section 2

प्राधिकार से प्रकाशित

PUBLISHED BY AUTHORITY

नई दिल्ली, शनिवार, मार्च19, 2005 / फाल्गुन 28 , 1926

° 8] No. 8] NEW DELHI, SATURDAY, MARCH 19, 2005 / PHALGUNA 28, 1926

इस भाग में भिन्न पृष्ठ संख्या दी जाती है जिससे कि यह अलग संकलन के रूप में रखा जा सके । Separate paging is given to this Part in order that it may be filed as a separate compilation .

LOK SABНА

The following Bills were introduced in the Lok Sabha on 19th March, 2005 :-

BILL NO . 41 OF 2005

ABill to provide for regulating and developing the profession ofActuaries andfor matters connected therewith or incidental thereto.

Be it enacted by Parliament in the Fifty-sixth Year ofthe Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. ( 1) This Act may be called the Actuaries Act, 2005.

(2) It extends to the whole of India.

Short title, extent and commence- ment.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette , appoint :

Providedthat different dates may be appointed for different provisions ofthisAct and any reference in any such provision to the commencement ofthis Act shall be construed as reference to the coming in to force ofthat provision .

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- Definitions.

2.( 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;

21 of 1860 .

(b) "Actuarial Society" means the Actuarial Society of India registered under the Societies Registration Act , 1860 and the Bombay Public Trusts Act, 1950 ;

Bombay Act No. of1950 .

(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 44;

(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) " register" means the register of members maintained by the Institute under thisAct;

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

(m) "Tribunal" means a Tribunal established under sub - section ( 1) ofsection 16 ;

(n) "year" means the period commencing on the 1st day ofApril 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 ; ог

(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.

CHAPTER II

INSTITUTE OF ACTUARIES OF INDIA

Incorporation ofInstitute.

3.( 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 3 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

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 abody 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 maybe decided by the Central Government .

4. On the appointed day,----

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

Transfer of assets, liabilities , etc. , ofActuarial Society.

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 accounts 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 ofthe 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

(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 continuedor may be instituted by or against the Institute.

5. The objects of the Institute shall be to

Objects of Institute.

(a) promote, uphold and develop the standards ofprofessional education , training, knowledge, practice and conduct amongst Actuaries ;

(b) promote the status of the Actuarial profession;

(a) promote, in the public interest, knowledge and research in all matters relevant to actuarial science and its application; and

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

Entry ofnames in register.

6. (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;

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- (a) 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) ofsub - section ( 1) shall have his name entered in the register on an application being made and granted in the specified manner and on payment ofsuch 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 inanyelection or meetings of the Institute and shall not also be required to pay any fee to the Institute.

Associates and fellows.

7. ( 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 .

(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. ( 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.

Honorary, affiliate and student members.

(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 .

Certificate of practice.

9.( 1) No member of the Institute shall be entitled to practice , unless he has obtained from the Council a certificate of practice.

5 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

(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.

Members to be known as Actuaries.

10. 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 behalfby 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 .

Disqualifica- tions.

11. Notwithstanding anything contained in section 6 , a person shall not be entitled to have his name entered in, or borne on , the register ifhe-

(a) has not attained the age of twenty- one years at the time ofhis 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

(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 hispart, 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

() has been removed from the membership of the Institute on being found on inquiry to have been guilty of a professional or other misconduct :

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

Composition of Council of Institute.

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

(a) a minimum of eight 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; and

41 of 1999 .

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

(ii) not more than three 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:

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

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 an office of profit 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 ofthe members of the Council referred to in clause (a) of sub- section (2) shall retire at every annual general meeting of the Institute by rotation but shall be eligible for re-election .

(5) Any person nominated under clause (6 ) of sub -section (2 ) shall hold office during the pleasure of the President for a period of five years from the date of nomination and shall be eligible for re-nomination .

Annual General meetings.

13. 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 .

Re-election to Council.

14. (1) Amember of the Council elected under clause (a) ofsub - section ( 2) of section 12 shall be eligible for re - election but not for more than three consecutive terms .

(2) A member of the Council , who is or has been elected, as President under sub- section ( 1) of section 17 , shall not be eligible for re -election as a member ofthe Council .

Settlement of disputes regarding election .

15. In case of anydispute 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 .

Establishment ofTribunal .

16. ( 1) On receipt of any application under section 15 , the Central Government shall , bynotification, 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) Aperson 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;

(6) as a Member unless he has been a member of the Council for at least one full term; and

(c) as aMember 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 ofpay 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 ofthe Tribunal , their place of meetings , remuneration and allowances shallbe such as may be prescribed.

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

SEC . 2]

7 THE GAZETTE OF INDIA EXTRAORDINARY

President, Vice- President andHonorary Secretary.

17. ( 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 another member in the same manner:

Provided that the Chairperson of the Council ofthe Actuarial Society shall continue to hold such office as President after the commencement ofthis 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 hisduties .

18. (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.

Resignation from member- ship and filling upofcasual vacancies .

(2) Amember ofthe Council , other than a member nominated under clause (b) ofsub- 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 if his name is, for any cause, removed from the register under the provisions of sections 24 and 30 .

(3) Ifthe seat of a member becomes vacant before the expiry ofhis term of membership , the resulting casual vacancy may be filled up by the Council in such manrier as may be specified:

Provided that any person filling the casual vacancy shall hold the membership of the Council till vacancy is filled up in accordance with clause (a) of sub -section (2 ) of section 12.

(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 .

Functions of Council.

19. ( 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 feestherefor;

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

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

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(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 ofthe Institute by exchange of members and generally in such manner as may be conducive to achievement of their common objects;

(1) 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) carrying out, by financial assistance to persons other than members of the Council, or in any other manner , research in the actuarial science ;

(0)the maintenance ofa library and publication of books , journals and periodicals relating to actuarial science;

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

(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. (1 ) For the efficient performance of its functions , the Council may

Staff, remuneration and allow- ances

(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 .

Committees of Council .

21. ( 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.

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

Provided that-

(1) where the President is a member of such committee , he shall be the Chairman ofsuch committee , and in his absence , the Vice-President, if he is a member of such committee , shall be its Chairman ; and 9 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

(ii) wherethe 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 maybe specified.

Finances of Council .

22. ( 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 ofthe fund in any Central or State Government security as it may deem prudent consistent with the considerations of security of such investments and maximum returns thereon .

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

38 of 1949 .

(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 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.

2of1934.

(6) The Council may borrow from a scheduled bank, as defined in the Reserve Bank of India Act, 1934, or from any public financial institution-

(a) any money required for meeting its liabilities on capital account on the security ofthe fund or on the security of any other asset, for the time being belonging to it ; or (6) for the purpose of meeting current liabilities , pending the receipt of income, by way of temporary loan or overdraft .

1 of1956.

Explanation . The expression "public financial institution " means a financial institution specified in section 4A of the Companies Act, 1956.

CHAPTER III

REGISTER OF MEMBERS

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

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

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

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

(a) 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 ofmembers as on the 1st day ofApril 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.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II- (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. The Council may, by order, remove from the register the name of any member of the Institute-

Removal of name from Register.

(a) who is dead; or

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

(a) 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.

Re-entry in register.

25. 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.

CHAPTER IV

MISCONDUCT

Disciplinary Committee.

26. ( 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.

Appointment ofProsecution Director.

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

(2) In order to make inquiries under the provisions of this Act, the Prosecution Director shall follow such procedures as may be prescribed.

5 of 1908 .

28. For the purposes of an inquiry under the provisions of this Act , the Authority, the Council, 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, in respect of the following matters , namely: ----

Authority, Council, Disciplinary Committee and Prosecution Directorto have powers of civil court .

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

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

29.( 1) On receipt of a report from the Disciplinary Committee , ifthe 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 .

Action by Council on Disciplinary Committee's report.

SEC . 2]

THE GAZETTE OF INDIA EXTRAORDINARY

11 (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 ofthe Council,

(3) If the Council disagrees with the findings of the Disciplinary Committee, it may direct the Prosecution Director to make an appeal to theAuthority.

Member to be afforded opportunity of beingheard.

30. Where the Council is of the opinion that a member is guilty of a professional misconduct mentioned in the Schedule, it shall afford to the member a reasonable opportunity ofbeing heard before making any order against him and may thereafter take any one or more ofthe 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.

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 ofthe inquiry.

Professional misconduct defined.

31. For the purpose of this Act, the expression "professional misconduct" shall be deemed to include any act or omission mentioned in the Schedule or as may be prescribed, but nothing in this section shall be construed to limit or abridge in any way the power conferred or duty cast on the Council to inquire into the conduct of any member ofthe Institute under any other circumstances .

CHAPTER V

APPEALS

38 of 1949 .

Constitution of Authority.

32. The Appellate Authority constituted under sub- section ( 1) of section 22A of the Chartered Accountants Act, 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 has 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; " .

Term of Members of Authority.

33.A person appointed as a Member shall hold office for a term of five 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. ( 1) The allowances payable to, and other terms and conditions of service of the Members shall be such as may be prescribed.

Allowances and conditions ofservice of Members of Authority.

(2) The allowances to the Members shall be paid by the Council in such manner as maybe prescribed.

38 of1949.

Procedure , etc. , ofAuthority.

35. The provisions of section 22D and section 22F ofthe Chartered Accountants Act, 1949 shall apply to the Appellate Authority in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Chartered Accountants Act, 1949.

36. ( 1 ) The Council shall make available to the Authority such officers and other staff members as may be necessary for the efficient performance ofthe functions of the Authority.

Officers and other staffof Authority.

(2) The salaries and allowances and conditions of service of the officers and other staff members made available to the Authority shall be such as may be specified.

Appeal to Authority.

37. ( 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 thirty days of the date on which the order is communicated to him , prefer an appeal to theAuthority:

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

Provided that the Authority may entertain any such appeal after the expiry ofthe said period ofthirty days , if it is satisfied that the member was prevented by sufficient cause from 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 caseto the Disciplinary Committee for such further inquiry as the Authority considers proper in the circumstances of the case ; or

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

Providedthat no order of the Council shall be modified or set aside unless the Council has been given an opportunity of being heard and no order imposing or enhancing a penalty shall be passed unless the person concerned has also been given an opportunity of being heard.

CHAPTER VI

PENALTIES

38. Subject to the provisions of section 10, any person who ,-

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

Penalty for falsely claiming tobe a member , etc.

(1) represents that he is a member of the Institute in any of the manners mentioned in section 7; or

(ii) uses the designation " Actuary " ; or

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

(iv) practices 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 practices as an Actuary,

shall be punishable on first conviction with fine which may extend to ten thousand rupees , and on any subsequent conviction with imprisonment which may extend to six months , or with fine which may extend to twenty - five thousand rupees , or with both .

39. ( 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

Penalty for using name of Institution, awarding degrees of actuarial science, etc.

(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

(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.

13 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

40. ( 1) No company, whether incorporated in India or elsewhere , shall practice as Actuaries.

Companies not toengage in actuarial practice.

(2) Any company contravening the provisions of sub - section (1) shall be punishable onfirst 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 .

41. (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.

Unqualified person not to sign docu- ments .

(2)Anyperson 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.

Offences by companies .

42. (1 ) If the person committing an offence under this Act is a company, the company aswell 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: Providedthat 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.

(2) Notwithstanding anything contained in sub - section ( 1 ) , where an offence under thisAct 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 ofindividuals ; and

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

Sanction to prosecute.

43. 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

44. ( 1 ) The Central Government shall , by notification, constitute a Quality Review Board consisting of a Chairman and not more than four Members:

Establishment ofQuality ReviewBoard.

Provided that in case the Board is constituted with two Members , one each shall be nominated by the Board and the Central Government, respectively.

(2) The Chairman and Members of the Board shall be appointed from amongst the persons having eminence and 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 .

45. The Board shall perform the following functions , namely:-

Functions of Board.

(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 ofthe Institute including actuarial audit services ; and [PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and other regulatory requirements .

Procedure of Board.

46. The Board shall follow in its meeting and in discharging its functions such procedure asmay be prescribed .

47. The terms and conditions of service of the Chairman and the Members of the Board, their place of meetings , remuneration and allowances shall be such as may be prescribed.

Terms and conditions of Chairman and Members of Board.

48. The expenditure of the Board shall be borne by the Council .

Expenditure of Board.

CHAPTER VIII

DISSOLUTION OF THE ACTUARIAL SOCIETY OF INDIA REGISTERED UNDER THE SOCIETIES

REGISTRATION ACT

49. On the appointed day,-

Dissolution of Actuarial Societyof India.

21 of 1860. Bombay Act XXXIX of 1950.

(a) the Society known as the Actuarial Society of India registered under the Societies Registration Act, 1860 and the Bombay Public Trusts Act, 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 thisAct;

(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.

Provisions respecting employees of dissolved society.

50. ( 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.

14 of 1947 .

(2) Notwithstanding anything contained in the Industrial Disputes Act, 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

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

Maintenance of more than one officesby Actuary.

Provided that the Council may in suitable cases exempt any Actuary in practice or Erm 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 .

Reciprocity.

52. (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 SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

15. 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, ifany, subject to which foreign qualifications relating to actuarial science shall be recognised for the purposes of entry in the register.

53. ( 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 .

Power of Central Government to issue directions.

(2) If, in the opinion of the Central Government, the Council has persistentlymade default in giving effect to the directions issued under sub - section ( 1 ) , it may, after giving an opportunity ofbeing 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 theprovisions ofthis Act, authorise any person or body ofpersons to take over the management ofthe affairs of the Council and to exercise such functions as may be mentioned in the notification.

Protection of action taken in good faith.

54. 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 , 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.

Members, etc. , to be public servants. 45of1860.

55. The Chairperson, Presiding Officer, Chairman, 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.

56. ( 1 ) The Central Government may, by notification , make rules to carry out the provisions ofthis Act.

Central Government Power of to make rules.

(2) Inparticular and without prejudice to the generality of the foregoing powers, 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 ;

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

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

(f) the allowances, terms and conditions of service of the Members oftheAuthority and the manner of payment of allowances by the Council under section 34;

(g) the procedure to be followed by the Board in its meetings and discharging its functions under section 46 ; and [PART II- THE GAZETTE OF INDIA EXTRAORDINARY

(h) terms and conditions of service of the Chairman and Members of the Board under section 47.

Power to make regulations.

57. (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) ofsection 6, sub -section (2) ofsection 9, clause (a) of sub - section (2 ) of section 19, sub - section (4) of section 23 ;

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

(e) the terms and conditions on which an affiliate member may be admitted under sub - section (2) of section 8 ;

( the academic qualifications for admission of a student member under sub- section (3 ) of section 8;

(g) the form in which an application may be made under sub -section (2 ) of section 9;

(h) the filling up of a casual vacancy of the Council, as required under sub- section (3) of section 18;

(1) the transaction of business by the Council for the discharge of its functions mentioned in sub- section (2 ) of section 19;

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

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

(1) 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;

(m) the manner in which the annual list of members of the Institute may be published under sub -section (3 ) of section 23 ;

(n) the conditions and requirements and payment of fee for re-entry in the register under section 25;

(0) salaries and allowances and conditions of service of the officers and other staffmember of the Authority under sub - section (2 ) of section 36;

(p) the conditions subject to which foreign qualifications may be recognised under sub -section (2 ) of section 52 ; and

Act. (9) any other matter which is required to be , or may be prescribed under this 58.(1) Where the Central Government considers it expedient so to do , it may, by order inwriting, 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.

Power of Central issue directions Government to for making or amending regulations.

(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.

17 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

Laying of rules and regulations .

59. Every rule and 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 ofanything previously done under that rule or regulation.

Powerto remove difficulties.

60. (1) Ifany 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 ofthis 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.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II-

THE SCHEDULE

(See section 31 )

PART I

Professional misconduct in relation to members ofthe Institute in practice

AnActuary 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 (4) secures either through the services of a person who is not an employee of suchActuary or who is not qualified to be his partner or by means which are not open to an Actuary, any professional business ; 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 ofpermitting such partnership , provided the Actuary shares in the fees or profits ofthe business of the partnership both within and outside of India ; 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 ofsuch 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 19 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2 ]

(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

(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 ofthe Institute in service

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

Amember 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 ; ог

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

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

STATEMENT OF OBJECTS AND REASONS

The insurance sector has already been opened to private sector with the enactment of the Insurance Regulatory and Development Authority Act, 1999. In addition to the six nationalized insurance companies , which were transacting insurance business , twenty- one private sector companies have started transacting insurance business in the country.

2.Traditional responsibilities ofActuaries in life and general insurance business include designing and pricing of policies , monitoring the adequacy of the funds to provide the promised benefits, recommending fair rate of bonus where applicable , valuation of the insurance business , ensuring solvency margin and other insurance risks like legal liability, loss of profit, etc. They also define the risk factors , advise on the premia to be charged and re -insurance to be purchased, calculate reserve for outstanding claims and carry out financial modeling . An Actuary works as consultant either individually or in partnership with other Actuaries in multi-disciplines like insurance , information technology, taxation , employees benefit, risk management , investment, etc. Evidently, the scope of the functions and duties ofan Actuary has increased considerably under the changed conditions.

3.At present, the Actuarial Society of India, which is registered under the Societies Registration Act, 1860 and the Bombay Public Trust Act, 1950 manages the affairs ofthe actuarial profession in India . It is proposed to regulate the profession of Actuaries through an enactment on the same lines as the professions of Chartered Accountants , Cost and Works Accountants and Company Secretaries are regulated under the Chartered Accountants Act, 1949, the Cost and Works Accountants Act , 1959 and the Company Secretaries Act, 1980, respectively.

4. The Institute of Actuaries of India, to be constituted under the proposed Bill will have the responsibility for conducting examinations for the profession ofActuaries , regulating the profession including professional misconduct, and creating necessary facilities for the growth and training of the members of the profession. It is also proposed to dissolve the Actuarial Society of India and transfer the assets and liabilities of the said Society to the proposed Institute ofActuaries of India. The Bill, inter alia, makes provision for an Appellate Authority, a Tribunal , a Quality Review Board , etc. , for the purposes ofthe Bill .

5. The Bill seeks to achieve the above objects .

P. CHIDAMBARAM.

NEW DELHI; The 24th February, 2005 .

21 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

Notes on clauses

Clause 2 defines the various expressions used in the Bill and in particular, the expression "Actuary" which the Bill intends to deal with.

Clause 3 provides for the incorporation of the Institute ofActuaries of India. It also provides that the head office ofthe Institute shall be at such place as the Central Government maydecide.

Clause4 provides for the transfer and vesting of assets , obligations and liabilities of the Actuarial Society of India to the Institute ofActuaries of India.

Clause 5 seeks to enumerate the basic objects of the Institute relating to various aspects ofthe actuary, the actuarial profession and actuarial science.

Clause 6 provides as to persons who are entitled to have their names entered in the register of the Institute ofActuaries of India.

Clause 7 seeks to designate the members of the Institute into two classes i.e. as associates and fellows .

Clause 8 provides for choosing ofhonorary members , admission of affiliated members and student members in such manner as may be specified.

Clause9 seeks to provide that no member of the Institute shall practice without obtaining a certificate of practice from the Council and also makes provision for cancellation of certificate of practice under specified circumstances.

Clause 10 deals with the use ofdesignation of an actuary and other related conditions .

Clause 11 seeks to provide for the disqualifications regarding entry ofnames ofpersons in the register ofthe members of the Institute ofActuaries of India.

Clause 12 provides for the composition of the Council of the Institute ofActuaries of India which shall be responsible for the management of its affairs and for discharging the functions assigned to the Council by or under the Bill .

Clause 13 seeks to provide for the annual general meetings of the Institute to elect its members or to discuss any matter which it deems fit .

Clause 14 makes provisions with respect to re -election of a member to the Council and restricts his consecutive terms in the Council to three. It further provides that the President ofthe Council cannot be re-elected as a member.

3. Clause 15 provides for settlement of disputes regarding election to the Council .

Clause 16 provides for establishment of a Tribunal by the Central Government to decide disputes regarding election to the Council.

Clause 17 seeks to provide for the election ofPresident, Vice- President and Honorary Secretary ofthe Council and their term of office .

Clause 18 provides for the resignation from membership of the Council and filling up ofthe causal vacancies .

Clause 19vests in the Council the duty of carrying out the functions under the provisions oftheBill and seeks to enumerate its various functions .

Clause 20 seeks to provide for appointment of staff of the Council , fixation of their salaries and allowances and the allowances of the President, the Vice-President, the Honorary Secretary and its other members and that of the Committees .

Clause 21 seeks to provide for the constitution of various committees of the Council.

Clause 22 seeks to provide for the establishment of a fund to be managed by the Council , its maintenance and auditing of annual accounts , and causing to be published the audited accounts and the report of the Council at the end of each year.

Clause 23 require the Council to maintain a register of the members of the Institute containing specific particulars about every member in such manner as may be specified by regulations.

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

Clause 24 seeks to provide for the removal ofthe name of a member from the register of the Institute in certain cases .

Clause 25 seeks to provide for the manner of re -entry ofthe name of a member in the register of the Institute of Actuaries of India .

Clause 26 provides for constitution of Disciplinary Committee by the Council which may make inquiry relating to any professional or other misconduct of any member of the Institute and submit a report in this regard .

Clause 27 authorises the Council to appoint a Prosecution Director and such other employees for making inquiries in respect of any information or complaint received by it against any member of the Institute.

Clause 28 provides that the Authority, the Council , the Disciplinary Committee and Prosecution Director shall have the powers of a civil court which are necessary for the purposes ofan inquiry.

Clause 29 provides for action by the Council on the report of Disciplinary Committee and for appeal to the Appellate Authority if the Council disagrees with such report.

Clause 30 provides for a member of the Institute to be afforded opportunity of being heard before making any order or taking any action against him .

Clause 31 seeks to describe the expression " professional misconduct" .

Clause 32 provides that the Appellate Authority constituted under sub -section (1) of section 22A of the Chartered Accountants Act, 1949 , shall be deemed to be the Appellate Authority for the purposes of this Bill .

Clause 33 provides for the term of office of the members of the Appellate Authority.

Clause 34 provides that the allowances and other terms and conditions of service of members of the Appellate Authority shall be such as may be prescribed by rules.

Clause 35 provides that the procedures etc. of the Appellate Authority in the discharge of its functions shall be governed by section 22D and section 22F of the Chartered Accounts Act, 1949 .

Clause36 provides for making available officers and other staff to the Authority, and to specify by regulations their salary and allowances and other conditions of service.

Clause 37 seeks to provide for an appeal by an aggrieved member against the order of the Council . It also provides for an opportunity ofhearing to the Council before modification of its order , and to the person concerned before an order imposing or enhancing penalty is passed against him. Clause 38 provides for penalty for falsely claiming to be a member of the Institute, or being a member ofthe Institute , but not having a certificate of practice , represents or practices as anActuary.

Clause 39 provides for the penalty for using the identical name or common seal ofthe Institute or award of degree or diploma , etc. , of actuarial science in contravention of the provisions of this Bill .

Clause40 prohibits companies from practicing the profession ofactuaries and provides penalty for contravention .

Clause 41 prohibits any person other than a fellow member of the Institute from signing any document on behalf of an Actuary in practice or a firm of such Actuaries and provides for penalty for violation of these provisions .

Clause42 seeks to provide for liabilities ofpersons in respect ofthe offences committed by a company.

Clause 43 prohibits prosecution of any person, except on a complaint made by, or under the order of, the Council or the Central Government .

Clause 44 provides for establishment of Quality Review Board to review the quality of services provided by the members of the Institute ofActuaries of India .

23 THE GAZETTE OF INDIA EXTRAORDINARY

SEC. 2]

Clause45 enumerates the functions of the Quality Review Board.

Clause46 is an enabling provision under which the procedure to be followed by the Quality Review Board in discharging its functions can be prescribed.

Clause47 provides for prescribing the terms and conditions of service ofthe Chairman and the members ofthe Board, their remuneration and allowances and the place ofmeetings, etc. Clause48 provides that the expenditure of the Board shall be borne by the Council .

Clause 49 seeks to provide for the dissolution of the existing Actuarial Society of India.

Clause 50 seeks to provide for transfer of services of the employees of the Actuarial Society to the Institute ofActuaries of India on the same tenure and upon the same terms and conditions and with the same rights and privileges as to retirement benefits as they would have held under the dissolved society; and that such transfer shall not entitle any such employee to any compensation under the Industrial Disputes Act, 1947 or any other law and that such claim shall not be entertained by any court, tribunal or other authority.

Clause 51 seeks to provide for manning more than one offices of Actuary or a firm of Actuaries within or outside India by putting each offices in separate charge of a fellow member of the Institute and to keep the Council informed of any changes in the list of offices and person incharge thereof.

Clause 52 seeks to provide for reciprocity to the subjects of other countries in case persons of Indian domicile are prevented from becoming members of similar Institution in that country, and for recognition of foreign qualifications relating to actuarial science .

Clause 53 seeks to empower the Central Governmentto issue directions to , or dissolve the Council . It also provides that in the event of such dissolution, pending the constitution ofa new council , it may authorise any person or body of persons to exercise such functions ofthe council as it may direct by notification .

Clause 54 seeks for protection of action taken in good faith by the Central Government, Council,Authority and such other statutory bodies under the Bill .

Clause 55 provides for Chairperson, Members etc. of the Authority, Tribunal and Board and the Prosecution Director to be public servants within the meaning of section 21 of the Indian Penal Code .

Clause 56 empowers the Central Government to make rules to carry out the provisions ofthe Bill . It enumerate matters with respectto which the Central Government shall have the powers to make rules under the Bill .

Clause 57 seeks to empower the Council to make regulations for carrying out the provisions of this Bill with the previous approval ofthe Central Government and subject to the previous publication in the Official Gazette .It also enumerate matters relating to which such powers may be exercised .

Clause 58 seeks to empower the Central Government to direct the Council to make regulations or to amend or revoke such regulations where it considers expedient so to do, within a specified period and in the event of failure or negligence to comply with such directions the Central Government may itself make , amend or revoke the regulations made bytheCouncil.

Clause 59 seeks to provide for laying of rules and regulations before each House of Parliament.

Clause 60 seeks to empower the Central Government to remove the difficulties that may arise in giving effect to the provisions of the Bill or in its implementation , within a specified period .

The Schedule to the Bill seeks to define professional misconduct and categorises the misconduct into three parts such as professional misconduct in relation to ( 1 ) Members of the Institute in practice, (2) Members of the Institute in service and (3 ) Members of the Institute generally.

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

FINANCIAL MEMORANDUM

The Central Government proposes to establish a professional body by converting the existing Actuarial Society of India into the Institute ofActuaries of India under clause 3 of theBill. The new Institute is expected to be self- financing and self- supporting and does not envisage any budgetary support from the Central Government .

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 56 of the Bill empowers the Central Government to make rules to carry out the provisions ofthe Bill in its implementation . Clause 57 empowers the Council ofthe Institute of Actuaries of India to make regulations generally for the purpose of carrying out the provisions ofthe Bill .

The regulations made by the Council under this Bill shall be subject to the condition of previous publication and approval of the Central Government . These matters are of procedural character. The rules and regulations made under the Bill will have to be laid before eachHouse of Parliament and they will be subject to the scrutiny ofParliament. The delegation of legislative power is , therefore, of a normal character.

25 THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

BILL NO . 48 OF 2005

ABill to providefor the withdrawal of certain sumsfrom and out of the Consolidated Fund ofthe State ofBiharfor the services ofa part ofthefinancial year 2005-06.

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

Short title .

1. This Act may be called the Bihar Appropriation (Vote on Account) Act, 2005 .

2. From and out ofthe Consolidated Fund ofthe State ofBihar there may be withdrawn sums not exceeding those specified in column 3 ofthe Schedule amounting in the aggregate to the sum of ten thousand five hundred ninety- two crores, ninety lakhs , twenty-three thousand and eight hundred rupees towards defraying the several charges which will come in course of payment during the financial year 2005-06.

Withdrawal of Rs . 10592,90,23,800 out of the Consolidated Fund of the State ofBihar for the financial year 2005-06 .

Appropriation.

3. The sums authorised to be withdrawn from and out ofthe Consolidated Fund of the State ofBihar by this Act shall be appropriated for the services and purposes expressed in the Schedule in relation to the said year.

[PART II-

THE GAZETTE OF INDIA EXTRAORDINARY

THE SCHEDULE

(See sections 2 and 3 )

Services and purposes

No. of Vote/ Appro- priation

Revenue

1 Agriculture Department

Revenue

2 Animal Husbandary Department

Revenue

3 Building Construction Department

Capital

Revenue

Cabinet Secretarial and Coordination Department .

Revenue

CHARGED ,-Secretariat of the Governor ...

Revenue

Election

Revenue

7 Vigilance

Revenue

8 CivilAviation Department

Capital

Revenue

9 Co - operative Department

Revenue

10 Energy Department .

Capital

Revenue

11 Excise and Prohibition Department

Revenue

12 Finance Department

Revenue

CHARGED .-Interest Payment .

Capital

CHARGED. Repayment of Loans

Revenue

Pension

Revenue

16 National Savings

Revenue

17 Finance (Commercial Tax) Department

Capital

Revenue

18 Food, Supply and Commerce Department .......

Revenue

19 Forest and Environment Department

Capital

Revenue

Health , Medical Education and Family Welfare Department

Revenue

21 Higher Education Department

Revenue

22 Home Department

Revenue

23 Industries Department .

Sums not exceeding

Total Voted by Parliament

Charged on the Consolidated Fund

Rs .

Rs.

100,98,37,942 100,98,37,942

37,91,28,547 37,91,28,547

41,89,85,412 41,89,85,412

53,99,18,363 53,99,18,363

3,00,17,783 3,00,17,783

1,03,34,537

12,94,64,583 12,94,64,583

3,14,70,725 3,14,70,725

2,08,67,310 2,08,67,310

41,66,667 41,66,667

15,25,15,896 15,25,15,896

5,19,71,667

Capital 5,19,71,667

4,33,86,536 4,33,86,536

511,71,35,125 511,71,35,125

7,16,75,916 7,16,75,916

194,75,86,636 194,75,86,636

4,62,96,042

Capital 4,62,96,042

1656,97,47,822 1656,97,47,822

1316,27,42,693 1316,27,42,693

1144,79,51,017

82,39,762

1143,97,11,255

1,11,32,333 1,11,32,333

12,27,58,918 12,27,58,918

2,08,33,333 2,08,33,333

30,52,46,844 30,52,46,844

22,85,11,918 22,85,11,918

333,16,50,255 333,16,50,255

4,16,66,667 4,15,66,667

Capital

254,30,10,518 254,30,10,518

543,76,09,074 543,76,09,074

30,07,61,667 30,07,61,667

Capital

14,31,28,413 14,31,28,413

4,36,41,250 4,36,41,250

Capital SEC. 2]

Servicesand purposes

No. of Vote/ Appropria tion

24 Information and Public Relation Department 25

Revenue

Institutional Finance and Programme Implementation Department

26 Labour, Employment and Training

Revenue

Department

Revenue

Law Department .

Revenue

CHARGED .-High Court of Bihar 29

Revenue

Mines and Geology Department

Revenue

30 Minorities Welfare Department

Revenue

Parliamentary Affairs Department 32

Revenue

Legislature

33 Personnel and Administrative Reforms Department

Revenue

CHARGED -Bihar Public Service Commission ..

Revenue

Planning and Development Department 36 Public Health Engineering Department

Revenue

Capital

Revenue

Rajbhasa Department

Revenue

38 Registration Department

Revenue

Disaster Management Department.

Revenue

40 Revenue and Land Reforms Department

Capital

Revenue

Road Construction Department

Capital

Revenue

Rural Development Department .

Capital

Revenue

Science and Technology Department

Capital

44 Secondary, Primary and Adult Education

Revenue

Department

Capital

Revenue

45 Sugarcane Department

Capital

Revenue

Tourism Department ...

Capital

THE GAZETTE OF INDIA EXTRAORDINARY

Sums not exceeding

Votedby Parliament

Total

Charged on the Consolidated Fund

Rs .

Rs. 5,41,75,377

Revenue

5,41,75,377 90,02,925

90,02,925 66,41,51,482

66,41,51,482

125

73,09,01,795

73,09,01,920

11,12,82,646

11,12,82,646 3,41,37,672

3,41,37,672 91,26,730

91,26,730 1,46,95,833

Capital

1,46,95,833 28,13,575

28,13,575 15,53,59,413

6,58,089

15,60,17,502 7,30,77,650

7,30,77,650

Capital 4,16,66,667

4,16,66,667

2,24,83,150

2,24,83,150 63,68,06,278

63,68,06,278 59,22,04,000

59,22,04,000 78,31,12,083

78,31,12,083 6,35,93,407

6,35,93,407 10,94,16,233

10,94,16,233 63,81,62,415

63,81,62,415 106,64,49,418

106,64,49,418 1,32,29,167

1,32,29,167 113,43,77,682

113,43,77,682 228,40,83,333

228,40,83,333 476,80,31,986

476,80,31,986 199,04,67,917

199,04,67,917 9,35,61,500

9,35,61,500 45,83,333

45,83,333 1594,81,46,575

1594,81,46,575 38,32,917

38,32,917 4,72,64,779

4,72,64,779 2,35,000

2,35,000 1,52,03,925

1,52,03,925 2,60,41,667

2,60,41,667 [PART II- THE GAZETTE OF INDIA EXTRAORDINARY

Sums not exceeding

Services and purposes

Total

Votedby Parliament

Charged on the Consolidated Fund

No. of Vote/ Appropria tion

Rs .

3,74,88,258

Revenue

Transport Department

4,16,667

Capital

51,43,21,783

Revenue

48 Urban Development Department

6,84,02,917

Capital

112,01,96,667

Revenue 112,01,96,667

49 Water Resources Department ....

363,76,66,667

Capital

119,13,66,292

Revenue

50 Minor Irrigation Department

29,57,43,375

Capital

310,23,93,193

Revenue

Welfare Department

22,02,083

Capital

9,33,78,418

Revenue

Youth. Art and Culture Department

46,25,000

Capital

10592,90,23,800

2988,54,88,823

7604,35,34,977

TOTAL 29 THE GAZETTE OF INDIA EXTRAORDINARY

SEC.2]

STATEMENT OF OBJECTS AND REASONS

This Bill is introduced in pursuance of articles 204( 1 ) and 206 of the Constitution read with the Proclamation issued under article 356 of the Constitution in respect of the State of Bihar on the 7th March , 2005 , to provide for the appropriation out of the Consolidated Fund of the State ofBihar of the moneys required to meet the expenditure charged on the Consolidated Fund of the State of Bihar and the grants made in advance by the Lok Sabha in respect of the estimated expenditure of the Government of Bihar for a part of the financial year 2005-06 .

P. CHIDAMBARAM .

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 207 OF

THE CONSTITUTION OF INDIA

[Copy of Letter No. F. 2(2 ) -B (S)/2005 , dated the 16th March , 2005 from Shri P. Chidambaram , Minister of Finance to the Secretary-General, Lok Sabha]

The President, having been informed of the subject matter of the proposed Bill to provide for the withdrawal of certain sums from and out of the consolidated Fund of the State ofBihar for the services ofa part ofthe financial year 2005-06 , recommends under clauses ( 1 ) and (3 ) of article 207 of the Constitution of India, read with clause (2 ) of article 206 thereof and the Proclamation dated the 7th March, 2005 issued under article 356 of the constitution, the introduction ofthe Bihar Appropriation (Vote on Account) Bill, 2005 in and the consideration oftheBill by Lok Sabha.

[PART II- THE GAZETTE OF INDIA EXTRAORDINARY

BILL NO . 49 OF 2005

ABill to authorise payment and appropriation ofcertain further sums from and out ofthe Consolidated Fund of the State ofBihar for the services ofthe financial year 2004-05 .

Be it enacted by Parliament in the Fifty- sixth Year of the Republic of India as follows:-

Short title.

1. This Act may be called the Bihar Appropriation Act, 2005 .

2. From and out of the Consolidated Fund of the State of Bihar there may be paid and applied sums not exceeding those specified in column 3 of the Schedule amounting in the aggregate to the sum of eight hundred nine crores , fifty- five lakhs , fourty- two thousands and five hundred twenty- five rupees towards defraying the several charges which will come in course ofpayment during the financial year 2004-05 , in respect of the services specified in column 2 ofthe Schedule .

Issue of Rs . 809,55,42,525 outof the Consolidated Fund ofthe State ofBihar forthe financial year 2004-05.

Appropriation . 3. The sums authorised to be paid and applied from and out of the Consolidated Fund of the State of Bihar by this Act shall be appropriated for the services and purposes expressed in the Schedule in relation to the said year.

SEC.2]

THE GAZETTE OF INDIA EXTRAORDINARY

THE SCHEDULE

(See sections 2 and 3)

Services and purposes

No. of Vote Appropri- ation

Revenue Agriculture Department

Revenue Animal Husbandry Department

Revenue 3 Building Construction Department

Capital 4 Cabinet Coordination and Secretariat

Department

Revenue

.............

CHARGED. Secretariat of the Governor

Revenue 9

Revenue Co-operative Department

Revenue Energy Department .

Capital 12

Revenue Finance Department

Revenue CHARGED. Interest Payment

Revenue Food, Supply and Commerce Department

Capital 20 Health , Medical Education and Family

Revenue Welfare Department

Capital 21

Revenue Higher Education Department

Revenue 22 Home Department

Revenue Industries Department .

Capital 24 Information and Public Relation Department Revenue 26 Labour, Employment and Training Department

Revenue 27 Law Department

Revenue

Revenue CHARGED. High Court ofBihar

Revenue Minorities Welfare Department

Revenue 32 Legislature

33 Personnel and Administrative Reforms Department

Revenue

Capital 36

Revenue Public Health Engineering Department

Capital 37

Revenue Rajbhasa Department

Revenue Registration Department

Revenue Disaster Management Department

Revenue Revenue and Land Reforms Department

41 Road Construction Department

Revenue

Capital

Sums not exceeding

Votedby Parliament

Total

Charged on the Consolidated Fund

Rs .

Rs.

Rs .

32,79,700

32,79,700 3,92,220

3,92,220 1,02,35,580

1,02,35,580

1,50,000

8,32,300

8,32,300 105,55,00,000

105,55,00,000 4,43,818

4,43,818 112,36,46,010

112,36,46,010 75,000

75,000

4,43,95,878

4,43,95,878 12,87,66,989

12,87,66,989 14,26,000

14,26,000 3,56,49,570

3,56,49,570 13,38,07,000

13,38,07,000 59,26,932

59,26,932 51,65,20,992

51,65,20,992 3,72,00,000

3,72,00,000 9,11,92,417

9,11,92,417 1,50,40,000

1,50,40,000 63,58,35,935

63,58,35,935 45,43,738

45,43,738

33,02,270

3,881

3,881 2,21,54,900

2,21,54,900 12,50,00,000

12,50,00,000 71,00,000

71,00,000 5,32,70,000

5,32,70,000 64,98,808

64,98,808 2,94,633

2,94,633 3,73,10,358

3,73,10,358 15,47,673

15,47,673 66,92,16,000

11,03,777

67,03,19,777 [PART II- THE GAZETTE OF INDIA EXTRAORDINARY

Sums not exceeding

Total Services and purposes

Votedby Parliament

Charged on the Consolidated Fund

No. of Vote/ Appropri- ation

Rs .

Rs.

95,09,42,091

Revenue

42 Rural Development Department .

2,69,15,000

Capital

13,87,92,188

Revenue

43 Science and Technology Department

Capital

82,32,10,000

Revenue

Secondary, Primary and Adult Education Department

1,27,62,100

Revenue

45 Sugarcane Department

1,76,24,000

Revenue

46 Tourism Department .

6,97,49,000

Capital

70,46,12,000

Revenue

48 Urban Development Department

5,00,06,769

Revenue

49 Water Resources Department

Capital

2,73,28,800

Revenue

50 Minor Irrigation Department

23,85,57,757

Revenue

51 Welfare Department

Capital

29,80,441

Revenue

52 Youth , Art and Culture Department

809,55,42,525

4,96,38,106

804,59,04,419

TOTAL SEC.2 ]

THE GAZETTE OF INDIA EXTRAORDINARY

STATEMENT OF OBJECTS AND REASONS

This Bill is introduced in pursuance of articles 204( 1 ) and 205 of the Constitution of India, read with the Proclamation issued under article 356 ofthe Constitution in respect ofthe State ofBihar on the 7th March, 2005 , to provide for the appropriation out ofthe Consolidated Fund of the State of Bihar of the moneys required to meet the supplementary expenditure charged on the Consolidated Fund of the State of Bihar and the grants made . by the Lok Sabha for expenditure of the Government ofBihar for the financial year 2004-05 .

P. CHIDAMBARAM.

PRESIDENTS RECOMMENDATION UNDER ARTICLE 207 OF

THE CONSTITUTION OF INDIA

[Copy of Letter No. F. 2( 2) -B ( S)/ 2005 , dated the 16th March , 2005 from Shri P. Chidambaram, Ministry ofFinance to the Secretary- General , Lok Sabha]

ThePresident, having been informed ofthe subject matter of the proposed Bill to authorise payment and appropriation of certain further sums from and out ofthe Consolidated Fund of the State ofBihar for the services of the financial year ending on the 31st day of March, 2005 recommends under clauses ( 1 ) and (3 ) of article 207 of the Constitution read with clause (2) of the article 205 thereof and the Proclamation dated the 7th March, 2005 issued under article 356, the introduction of the Bihar Appropriation Bill , 2005 in Lok Sabha and also the consideration of theBill.

G C. MALHOTRA, Secretary-General .

PRINTED BY THE MANAGER, GOVERNMENT OF INDIA PRESS , MINTO ROAD , NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI , 2005.

MGIPMRND-5293GI- 14-06-2005.

The Actuaries Act, 2005. The Bihar Appropriation (Vote on Account) Act, 2005. The Bihar Appropriation Act, 2005.

EXTRAORDINARY

PART II- Section 2

प्राधिकार से प्रकाशित

PUBLISHED BY AUTHORITY

नई दिल्ली, शनिवार, मार्च19, 2005 / फाल्गुन 28 , 1926

LOK SABНА

BILL NO . 41 OF 2005

PRELIMINARY

THE GAZETTE OF INDIA EXTRAORDINARY

INSTITUTE OF ACTUARIES OF INDIA

THE GAZETTE OF INDIA EXTRAORDINARY

REGISTER OF MEMBERS

THE GAZETTE OF INDIA EXTRAORDINARY

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

THE GAZETTE OF INDIA EXTRAORDINARY

CHAPTER VI

(iv) practices the profession of an Actuary; or

QUALITY REVIEW BOARD

REGISTRATION ACT

MISCELLANEOUS

THE GAZETTE OF INDIA EXTRAORDINARY

THE GAZETTE OF INDIA EXTRAORDINARY

THE SCHEDULE

(See section 31 )

STATEMENT OF OBJECTS AND REASONS

Notes on clauses

FINANCIAL MEMORANDUM

MEMORANDUM REGARDING DELEGATED LEGISLATION

BILL NO . 48 OF 2005

THE GAZETTE OF INDIA EXTRAORDINARY

(See sections 2 and 3 )

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 207 OF

THE CONSTITUTION OF INDIA

BILL NO . 49 OF 2005

THE SCHEDULE

(See sections 2 and 3)

THE GAZETTE OF INDIA EXTRAORDINARY

STATEMENT OF OBJECTS AND REASONS

PRESIDENTS RECOMMENDATION UNDER ARTICLE 207 OF

THE CONSTITUTION OF INDIA