Attention! - Forex trading is illegal in India!

[pkdoo7]

I am really confuse on the issue , forex is subjected under the denial and people who are willing to trade are really in great confusion , many times I have tried to understand how the rules are weaved but couldn't Interpret them , why because , rules are not out of ambiguous wordings and old amendments are against of new press releases , when I started reading the capital account transaction circular as well as press release and then forex facility chapters and again New FDI formula , all were showing different meanings and each of them doesn't mention clearly about the reality . People who are talking of forex related laws are In doubt or against of that . but it doesn't matter because RBI is main and if their is not clearly mentioned then consulting to the authority is one and only option .

 

[pkdoo7]

forex trading se government ko ban hata lena chahiye isse lakhon tax payers her saal desh main badhenge aur fiscal deficit aur sare deficit badi hi aasani se govt cover kar sakti hai maine is trade ke losses ko bade kareeb se dkha hai ismain kisi tarah ka koi risk nahin hai jab hum stop loss aur take profit order ka use karte hain aur investment low rakhte hain to 100$ ke deposit main 6-8 hr trade karke 20 -30 thousand rupee monthly badi hi aasani se earn ar sakte hain yani aap is trade main apne risk ko apne haanth main rakhte hain aur broker ka set margin aapke deposit ko kisi bhi tarah se nuksaan nahin deta , jo fear maine circular main paya hai woh useless hai , waisa jaise ki kuchh fools kahte hain ki forex is risky market aur 95% barbaad ho jate hain bilkul bakwas hai , it's a big rumor I say , USA aur Europe main lakhon log forex main achha kama rahe hain IT'S A Biggest financial market In the world and all risk and money management is in our hands . ye desh main unemployment ka aik achha solution dega aur unemployed self Employed banke govt. ko tax pay karenge .

 

[cypherbond]

Hi,
I recently started trading in forex & I earned descent pofiit through it. I'm using moneybookers or paypal for transactions. Then the amount is transferred to my account. Now the problem is that the transactions through these services are entitled as "moneybooker" or "Paypal transaction ID". So I'm concern about what type of transactions these will be classified in and I would like to know related issues.

 

[moneydeep]

http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/51175.pdf

 

[pkdoo7]

agar kisi din forex market ke badshah ne BSE , NSE ko hajam kar liya to apne ban per rone ke alawa aapke pass kya hoga

 

[comm4300]

Hi,
I recently started trading in forex & I earned descent pofiit through it. I'm using moneybookers or paypal for transactions. Then the amount is transferred to my account. Now the problem is that the transactions through these services are entitled as "moneybooker" or "Paypal transaction ID". So I'm concern about what type of transactions these will be classified in and I would like to know related issues.

Do you know that many many people use moneybookers/paypal/other such service to receive payment for their work [data entry/freelance/etc] done for US/Europe client.

You could term it as Income from service rendered.

rgds,

 

[ankush01]

Forex trading is not a permisible transaction for Indians even under the liberalised scheme of $100000. You can land in jail if RBI comes to know. Forex tarding is explicitly banned in FEMA and is non-bailable offence.

I have confirmed this from forex dept. of 5 banks (Pvt. and PSU both). 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). You have been warned.

According to http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

I know Forex trading in Foreign currency pair is banned in India. But I still find many companies like Alpari trading in Forex (OTC). Not many people are aware of it & I would like to know how come these companies are able to trade in Forex without any problems from RBI or FMC. In such cases,how do the transactions take place & why these rules are not implemented on such companies?

 

[ankush01]

Thank you so much for letting me know about the ban & the consequences of trading in such companies. I wonder when we have such strong rules/ban implemented for trading in Forex how these companies are still doing business in Foreign Currency Pairs for so many years now?? Why haven't RBI banned such companies yet?

 

[palekarbilal]

Hi,
Please understand that Currency trading in India is allowed only in 4 pairs USDINR, EURINR , GBPINR and JPYINR. And this market is regulated by both SEBI and RBI thus making it the safest market to trade.
If anyone is interested in opening an account in India to trade these pairs then please get in touch with me.
Trading in foreign pairs like EURUSD, USDJPY etc. is not allowed in India as exchange of Rupee to Dollar for margin funding to fund these accounts is not allowed.
Hope this info is helpful.
Thank you.

 

[DataRam]

I am really confuse on the issue , forex is subjected under the denial and people who are willing to trade are really in great confusion , many times I have tried to understand how the rules are weaved but couldn't Interpret them , why because , rules are not out of ambiguous wordings and old amendments are against of new press releases , when I started reading the capital account transaction circular as well as press release and then forex facility chapters and again New FDI formula , all were showing different meanings and each of them doesn't mention clearly about the reality . People who are talking of forex related laws are In doubt or against of that . but it doesn't matter because RBI is main and if their is not clearly mentioned then consulting to the authority is one and only option .

Forex trading may be illegal in many countries due to capital controls. However it is also likely due to investor protection. In countries that have regulated Forex trading, brokers are required to set up shop locally and be regulated by local authorities. A key requirement is customers' trading funds be deposited in escrow accounts so that there is no co-mingling with brokers funds. If such protection are not present, it is very easy for traders to lose their funds if the broker goes broke. Also be mindful of internet fraud. It is common for 'brokers' that are not regulated anywhere to set and solicit customers. After receiving trading funds, they keep the money, fold the business, change name and start the scam over again. Investors who fall prey to these have no recourse to get back their money.