Some of my forecasts

[Piratetrader]

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......

bhai have a look here - http://www.traderji.com/forex/60119-nsa-just-introduced-djia-s-p-500-global-indices.html post no.8

 

[Piratetrader]

Paul sir is lost between our conversation Paul Sir I am very sorry for making this a chit chat place and the charts cannot be found few pages ago! Without saying much adi bhai if more discussion then come on the link above!

 

[Piratetrader]

Bhai here is another speech sentence said by rbi, this is just what they said I don't know that wherever there speech can become a law but they also mentioned -
MUMBAI: The Reserve Bank today said resident Indians cannot trade in forex market as per the existing regulation.

The existing regulations under Foreign Exchange Management Act (FEMA), 1999, do not permit residents to trade in foreign exchange in domestic or overseas markets, RBI said in a statement.

The clarification of the RBI assumes significance in the light of several people losing heavily in forge trade through internet portals in the recent past."

It is clearly written that Indians cannot trade in forex but the question is this is just a speech that they said live wherever this will be applicable to stand as a law Is the main question

 

[adityasaraf007]

bhai have a look here - http://www.traderji.com/forex/60119-nsa-just-introduced-djia-s-p-500-global-indices.html post no.8

It says in point 4 that LRS cannot be used for Trading in Foreign Exchange ----- Again, confusion as this implies trading Spot... like I go to the bank with Rs500 and ask it to give me $10.....

Whereas, we are permitted to trade in Foreign Exchange Derivatives....

It says in point 2 that LRS cannot be used for margins/ margin calls ----- I am not sure about this, so better not to comment...


Anyways, LRS is just a way of remittance.... which involves least amount of hassles...

You may use other means of remitting the money, which may involve some amount of hassle for you

 

[adityasaraf007]

Bhai here is another speech sentence said by rbi, this is just what they said I don't know that wherever there speech can become a law but they also mentioned -
MUMBAI: The Reserve Bank today said resident Indians cannot trade in forex market as per the existing regulation.

The existing regulations under Foreign Exchange Management Act (FEMA), 1999, do not permit residents to trade in foreign exchange in domestic or overseas markets, RBI said in a statement.

----- Then who trades in the Currency Derivative Segment of NSE

The clarification of the RBI assumes significance in the light of several people losing heavily in forge trade through internet portals in the recent past."

----- Probably talking about brokers like etoro

It is clearly written that Indians cannot trade in forex but the question is this is just a speech that they said live wherever this will be applicable to stand as a law Is the main question

The source is confused.... It's absolutely wrong.... Untrustworthy.... See within quotes

 

[Piratetrader]

It says in point 4 that LRS cannot be used for Trading in Foreign Exchange ----- Again, confusion as this implies trading Spot... like I go to the bank with Rs500 and ask it to give me $10.....

Whereas, we are permitted to trade in Foreign Exchange Derivatives....

It says in point 2 that LRS cannot be used for margins/ margin calls ----- I am not sure about this, so better not to comment...


Anyways, LRS is just a way of remittance.... which involves least amount of hassles...

You may use other means of remitting the money, which may involve some amount of hassle for you

Better would be if some one from abroad would fund your account without charging you! so I think there would be no conversation Of INR to USD so no fema law is broken thus no remmiting or collectting money from india to aborad for the purpose of trading

 

[Piratetrader]

The source is confused.... It's absolutely wrong.... Untrustworthy.... See within quotes

CTD(Currency trading.....) is you can only trades pair with INR like INR/USD INR/EURO INR/GBP INR/JPY! This also have been mentioned and that even on recognised stock exchanges Like NSE!

 

[adityasaraf007]

Anyways....... Saif, If you really want to trade in Forex.... I would suggest you to consult a Financial Advisor - CFA, CPA, CA, etc..... and then take any decisions.....

It's always better to be safe than sorry....

And whatever, I have mentioned over here are my Opinions on my readings.... which maybe wrong too

 

[adityasaraf007]

Better would be if some one from abroad would fund your account without charging you! so I think there would be no conversation Of INR to USD so no fema law is broken thus no remmiting or collectting money from india to aborad for the purpose of trading

It's not that easy Saifu..... I have quoted the following text in verbatim from my Law TextBook of CA Final:

The FEMA extends to the whole of India. Also, the Act has extra territorial jurisdiction; ie; it also applies to:
(a) all branches, offices and agencies outside India owned or controlled by a person resident in India, and
(b) any contravention committed outside India by any person to whom this Act applies

 

[Piratetrader]

It's not that easy Saifu..... I have quoted the following text in verbatim from my Law TextBook of CA Final:

The FEMA extends to the whole of India. Also, the Act has extra territorial jurisdiction; ie; it also applies to:
(a) all branches, offices and agencies outside India owned or controlled by a person resident in India, and
(b) any contravention committed outside India by any person to whom this Act applies

Yes bhai but the act for fx trading as you have previously mentioned and the law that stands on the rbi website says that no Indian resident is permitted to remit or collect money from india ! That means the law will only apply to people who have converted INR to USD and used it for trading in forex pairs outside india! If the money itself is not owned by an indian or does not belong to india where would a law stand!