Some of my forecasts
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? It's my learning process.
Yes because of brokers like this AND ESPECIALLY IFOREX that gave advertisement on the internet ! here is the fulll notice --
It has been observed that overseas foreign exchange trading has been introduced on a number of internet/electronic trading portals luring the residents with offers of guaranteed high returns based on such forex trading. The advertisements by these internet/online portals exhort people to trade in forex by way of paying the initial investment amount in Indian rupees, the RBI said in a circular.
According to the RBI, some companies have reportedly engaged agents who personally contact people to undertake forex trading/ investment schemes and entice them with promises of disproportionate / exorbitant returns.
Most of the forex trading through these portals are done on a margining basis with huge leverage or on an investment basis, where the returns are based on forex trading. The public is being asked to make the margin payments for such online forex trading transactions through credit cards/deposits in various accounts maintained with banks in India. It is also observed that accounts are being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc, the RBI said.
Banks are advised to exercise due caution and be extra vigilant in respect of such transactions, the RBI warned.
It is clarified that any person resident in India collecting and effectingremitting such payments directlyindirectly outside India would make himself/ herself liable to be proceeded against with for contravention of FEMA, 1999 besides being liable for violation of regulations relating to know your customer (KYC) norms and anti money laundering (AML) standards, it said.
The RBI clarified that a person resident in India may enter into currency futures or currency options on a stock exchange recognized under section 4 of the Securities Contract (Regulation) Act, 1956, to hedge an exposure to risk or otherwise, subject to such terms and conditions as may be set forth in the directions issued by the RBI from time to time.
A derivative transaction is only permitted based on the presence of an underlying price risk exposure for which purchase and/or sale of foreign exchange is permitted under FEMA, 1999.
Remittances under the Liberalised Remittance Scheme are allowed only in respect of permissible capital or current account transactions or a combination of both.
All other transactions, which are otherwise not permissible under FEMA, 1999, including the transactions in the nature of remittance for margins or margin calls to overseas exchanges/overseas counterparty, are not allowed under the scheme, the RBI said.
bUt I wonder you said we can ask for permision or not! have you tried asking them did they allow adi?
It has been observed that overseas foreign exchange trading has been introduced on a number of internet/electronic trading portals luring the residents with offers of guaranteed high returns based on such forex trading. The advertisements by these internet/online portals exhort people to trade in forex by way of paying the initial investment amount in Indian rupees, the RBI said in a circular.
According to the RBI, some companies have reportedly engaged agents who personally contact people to undertake forex trading/ investment schemes and entice them with promises of disproportionate / exorbitant returns.
Most of the forex trading through these portals are done on a margining basis with huge leverage or on an investment basis, where the returns are based on forex trading. The public is being asked to make the margin payments for such online forex trading transactions through credit cards/deposits in various accounts maintained with banks in India. It is also observed that accounts are being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc, the RBI said.
Banks are advised to exercise due caution and be extra vigilant in respect of such transactions, the RBI warned.
It is clarified that any person resident in India collecting and effectingremitting such payments directlyindirectly outside India would make himself/ herself liable to be proceeded against with for contravention of FEMA, 1999 besides being liable for violation of regulations relating to know your customer (KYC) norms and anti money laundering (AML) standards, it said.
The RBI clarified that a person resident in India may enter into currency futures or currency options on a stock exchange recognized under section 4 of the Securities Contract (Regulation) Act, 1956, to hedge an exposure to risk or otherwise, subject to such terms and conditions as may be set forth in the directions issued by the RBI from time to time.
A derivative transaction is only permitted based on the presence of an underlying price risk exposure for which purchase and/or sale of foreign exchange is permitted under FEMA, 1999.
Remittances under the Liberalised Remittance Scheme are allowed only in respect of permissible capital or current account transactions or a combination of both.
All other transactions, which are otherwise not permissible under FEMA, 1999, including the transactions in the nature of remittance for margins or margin calls to overseas exchanges/overseas counterparty, are not allowed under the scheme, the RBI said.
bUt I wonder you said we can ask for permision or not! have you tried asking them did they allow adi?
No No adi bhai not like that! There is no person, broker or alien in this world who would give you, yield you any amount of gain! All you have to do that is by your self but on etoro you can see individuals RIO and trades Lets assume an example of facebook and orkut! We can look at anyone's profile if we log in right? same way etoro has an openbook feature which will show you any person's RIO and trades when they bought when they sold! openbook also allows you to copy trades mean that if you copy someone His trades are being cloned in your account! he will trade for you and will be responsible for whatever profit or loss you made if you follow them! beleive me I have tried it! there is no serious trading all silly people with no capital protection who trade with x400 risk and 50-100 pips would double or blow their account! They all have the "luck" with them! every such 10000% gainer bankrupts and fades away in some months or so!
Okay.... I got it.... So, I think that whatever, RBI came up with was regard to these practices of etoro and other foreign brokers.... Here, people who deposit the amount with them, would do so in the hope of copying others.... Right?
So, they didn't say that Forex Trading is illegal..... What they said was depositing the money with these brokers would make the person liable to be proceeded against under FEMA as well as Money Laundering Act and KYC..... I have not gone through Money Laundering, so can't comment on it......
If you read the RBI Notice carefully, they have clearly mentioned that we are free to trade in Currency Futures as well as Currency Options (ie; Currency Derivatives)...
So, cheer up.... submit the declaration to RBI and trade the Forex pairs you like.... I have become absolutely certain, it is absolutely legal for Indians to Trade in Currency Derivatives whether in India or abroad......
Trading in Currency Derivatives is a permissible Capital Account Transaction and you can use the Liberalized Remittance Scheme (LRS) for this.....
LRS cannot be used for transactions like etoro......
I hope you can get what I mean.....
As far as me asking for permission..... Nor do I trade in Forex neither have any interest at present...
LRS cannot be used for transactions like etoro......
I hope you can get what I mean.....
As far as me asking for permission..... Nor do I trade in Forex neither have any interest at present...
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