Chennai: The Actuarial Society of India (ASI) finds itself in a dilemma — whether to exit as ASI or morph into the Institute of Actuaries of India or something in between.

In 2006 Parliament passed the Actuaries Bill 2006 and obtained the president''s assent. The Act enables setting up the Institute of Actuaries of India on the lines of professional bodies like Institute of Chartered Accountants of India. As per the Act, the proposed institute will take over the assets and liabilities of the ASI.

After the president''s assent, the Act was notified in the official gazette on 8 November, 2006, stating that it comes into force from 10 November, 2006. Till 20 days ago ASI was unaware of the gazette notification. It was under the impression that the gazette notification would take place some time in April 2007.

With the circumstances changing some of the ASI''s decisions post notification hang in suspense. Notable amongst them is the holding of elections for the governing council.

According to sources the election process would be cancelled.

Says a member of ASI''s executive committee, "ASI is not yet dissolved. As per the new Act, the government has to declare a date… the appointed day on which the assets and liabilities of ASI are taken over by the new body. Only then would the ASI be dissolved."

He also asserts that the students and the qualified members will not be affected post notification.

"What has changed is the status of ASI''s governing body and some of the internal governing rules. After the gazette notification the existing ASI governing body has morphed into an interim governing council as envisaged in the Act and will continue till an elected council is installed." For that to happen the interim governing council has to draft and approve the new rules and regulations in line with the Act.

Prior to the passage of the bill by the Parliament, the actuarial body had set up a committee under the chairmanship of an actuary R Ramakrishan to chart out the roadmap for formation of the statutory institute. The committee had submitted its report in January 2007 and action is progressing on that.

It is learnt that ASI has now asked some senior actuaries to assist in complying with the legal formalities in setting up the institute. An ASI team will be meeting the officials of finance ministry to take the matter forward in a smooth fashion.