forex trading banned (tahnk-you for the reply)
Read carefully the words "any permissible current or capital account transaction". Forex is not a permisible transaction. You can land in jail if RBI comes to know. Forex tarding is expicitly banned in FEMA and is non-bailable offence. I have confirmed this from forex dept. of 5 banks. Only corporates are allowed to trade in forex - subject to the condition that they can use only their free dollar reserves. i.e. they cant purchase dollars by converting rupees into dollar, they can use only the existing dollars they have earned in normal business. Also another condition is that they cannot use leaverage of more than 10 times.
Individuals, please do not trade forex as it can land you in trouble (jail).
AS in the following the RBI bars you in totallilty from remiting money for forex trradingg:----------
Liberalised remittance scheme of USD 100,000 for resident individuals:
Eligibility
Only resident individuals are eligible to make remittance under liberalised remittance scheme
Limit USD 100,000 per financial year (i.e. April March)
# Form/ Documents Outward remittance request letter
# Application-cum-declaration under liberalised remittance scheme of USD 100,000
# Form A2
# If the applicant has not maintained the account for a minimum period of one year then
- Copies of bank statement for the previous year or
- Copies of latest Income-Tax assessment order or Return filed by the applicant
# Permissible purposes The liberalized remittance scheme is available for making remittances for permissible current or capital account transactions or a combination of both. Gift
# Donation
# Investment in overseas company through equity shares
# Investment in bonds / debt securities abroad
# Purchase or acquisition of immovable property abroad
# Overseas bank deposits
# Opening, maintain & hold foreign currency bank account outside India for making remittances under the scheme
However, under this facility resident cannot make remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterpart.
Transactions
not permissible under the
scheme a.Under Foreign Exchange Management (Current Account Transaction) Rules, 2000
# Remittances for any purposes specifically prohibited under Schedule I of the above
# Remittances for any items restricted under Schedule II of the above
b. Remittances made directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan
c. Remittances made directly or indirectly to countries identified by Financial Action Task Force (FATF) as non-cooperative countries and territories
d. Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the RBI to the banks
e. Remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterpart
, and if you ask directly at forex dept of any banks you might get clear explanation of what is allowed and what is not and remember sending some 2k or 5k from here to broker abroad is not a issue but bring back under taxation regime become more complicated and crumber some later if serious amount of funds are involved 