Attention! - Forex trading is illegal in India!

[RAMDAS]

Reliance money, Man Financial are Introducary broker in india
last month Alpari- UK open Office in Mumbai.
Those who have question ask these brokers for clarification

 

[NITINPAL]

helo all....
i agree wid supatrade but only if u guys trade outside the USD/INR pair which is a large spread...try fxcm and crediting ur account into a foreign account....

 

[pra]

helo all....
i agree wid supatrade but only if u guys trade outside the USD/INR pair which is a large spread...try fxcm and crediting ur account into a foreign account....

pl, describe briefly, what is the procedure to trade with foreign broker & how our bank involved in this transaction?

 

[jpauljha]

initial i was worried and had many kestion but

Thank God finally we come on conclusion with the support of many ext member that Forex trading is not inllegal in india.

Chears!
:thumb:

 

[girdharilal]

initial i was worried and had many kestion but

Thank God finally we come on conclusion with the support of many ext member that Forex trading is not inllegal in india.

Chears!
:thumb:

WHAT IS THE PROCEDURE TO SAFE GAURD THE MONEY
Nowadays number of people are almost advertising that tade is legal and give all the gauranties of securities and huge profit or a coaching of the abtruse trade.they seem to be fly by day operators or seem to know next to nothing about the naunces of the trade.then they almost vanish.CAan any body enumerated steps for recovery

 

[vijay22]

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.

Hi,
No body knows about forex trading is legal or illegal to trade in INDIA.Very first, we all Indians are not trading foreign currencies via INDIAN brokers which is absolutely illegal. We all trade online; cant we do any kind of work online( internet) from home? are we all handling vertual foreign currencies in INDIA?? We are dealing with foreign brokers, ofcourse this transaction is done thru bank wire transfer, if banks sends or remit our money will it be illegal?? (we all produce all documents to bank) are banks not aware of this matter?? many traders are trading in INDIA since 2 years, withdraws money, paying proper income tax are those concerned activities not aware of this?? there are many brokers has been opened their offices in INDIA is RBI or related sectors are not aware of those broker's activities in INDIA?? If foreign brokers can market their companies in INDIA opnely are we doing any kind of offence??? or illegal trading?? still yes, then why those brokers are not banned for their activities in INDIA?? This forex online trading is called derivatives where we can send money for this pls go thru RBI's regulation option "K".

 

[indiaforex]

Indian residents can trade in foriegn derivatives

hi
i would like to clarify on the misconception that forex trading is illegal for Indians. Indian residents can transfer funds to international brokers for trading in derivatives (equities, commodities and forex) under the liberalized scheme for up to $200,000). You can check the RBI circular for the same. however it is confirmed that fund transfer cannot be effected for margins and margin calls.
what is not yet approved by RBI is for a firm other than AD1s (Banks) to provide OTC products in India. Currently only corporates with forex exposure are allowed to trade in OTC products through indian banks. If OTC is allowed to be traded in India for Individuals, then without doing a wire transfer to foreign firms, we can pay in INR and can trade in international FOREX pairs.

 

[duster]

Re: Indian residents can trade in foriegn derivatives

hi
You can check the RBI circular for the same. however it is confirmed that fund transfer cannot be effected for margins and margin calls.

Which means you can still trade with 1:1 leverage (meaning no leverage) under LRS scheme.

If OTC is allowed to be traded in India for Individuals, then without doing a wire transfer to foreign firms, we can pay in INR and can trade in international FOREX pairs.

This may never happen, actually. Why would RBI do that? My opinion is that they will never introduce OTC in India and so that Indian traders will always have to work with foreign companies.

 

[buccas13]

TO put all the doubts to rest, I've bankwired 500 USD to my broker based in CYPRUS for forex trading.

Forms filled

form A2
LRS form
Application form
go to hdfcbank - forex & trade services - apply now - first second and third forms.

Additional documents provided:
Account opening letter
Minimum balance required to be maintained (print out of the webpage of brokers website)

The remittance is done under S0016 of form A2 ( See backside of form)

Do not go to the nearest branch for remittance. You have multi branching facility, go to the nearest main or big branch where you have a forex/remittance counters.

It may happen that the an ignorant officer at the branch will ask you to provide CA's certificate. It is required for a bulk amount. Besides it is to ensure that the due tax if any on the remitted amount is paid already. I'm sure no one is opening a 100000 USD account. So it will not be required.

*Do your own little study by visiting RBI and reading the amendments. Talk to the officer with technical words. It is very certain that he will not have LRS form. He will provide you current account transaction form. It will contain education travel medical emigration vacancy abroad options. Ask him for LRS form. Mention S0016 .... as the purpose.

Besides he will say you are sending 500 USD, it is small amount. It will come under current account. Only when you send big amount it amounts to capital transaction. tell that moron, this remittance will lead to increase of asset/liabilities abroad for me. Hence it is a capital account transaction.

 

[Offshore]

WHAT IS E-GOLD TRADING?
Hi every one.
Can any body tell me what is E-GOLD TRADING/investment. Is it legal in India according to SEBI norms. Is their any reputed brokerin India. It is valid in various Nations. Please share your experience about E-gold trading. My other query is - Is their any bank/reputed institute /Jeweler who Buy & sell ONLINE Gold 24 k coins/Bars. Please let me know.
Cheers
Vedkumar, M.S. India.

Egold is an electronic currency. There are others like Liberty Reserve or C-Pay. Many brokers have e-currencies accounts instead of bank wires as another option to fund the account. You must first open an e currency account with any of those companies and buy e currencies through a bank wire or credit card. From there you fund your Forex account. When you want money back, you reverse the process. You even can put it into a debit card and use the ATM to get cash.
On the other hand, many people open their Forex accounts under the name of an offshore corporation with a bank account and operate under a different jurisdiction.

Global Forex Exchange