I have been in this forum from a long time & learnt a loadz of things from it…
I have recently heared that forex trading for Indian Residents is Illegal as per the noms of FEMA & RBI … Please Let me know is it true or false … I am quiet worried about this is it a false talk people are saying or true … Please help me out and if possible get me a conformation for it…
What will be the rules & procedures to follow if allowded to trade in forex market …??
Going by what information i have gathered so far, I understand it is true. However, i am not sure what is the source to prove it. SEBI in Aug 2008 allowed trading of USD/INR but thats it. As per their norms trading forex is not within the frame work of their rules for retail traders. I will be happy to hear from other Indian traders who do live trade. Check traderji dot com to find out more or google about it.
It has got nothing to do with class or creed. Just that the Government has its own rules that prevents to trade foreign currencies. One reason i was told is the government is keen on not to allow money to get out of the country only to be multiplied and brought in illegally with out the notice of the government. They call it Hawala (Black) money . Another reasoning is also based on an information which states that Swiss banks has huge loads of money running to billions of dollars stacked by some rich Indians which when brought back to the country can solve major poverties. The Government is trying to check and plug ways to get money out of the country while it also tries to bring back illegal money. This also probably explains why there are no branches of foreign forex brokers in one of the fastest growing economies that is India. I did trade live and lost some money before i came to know it is against rules. So this is one of the reason why i hestitate to go live (other than arranging funds ofcourse). I am waiting for FINAL and Authentic confirmation from Live traders from India. Unable to come across some real source. I only can request thru this forum for people to confirm this with authentic proof. Till that time i am content to hone my skills by learning this tricky market.
Hi,
May i know where are you trading from ? Are you an Indian Citizen ? Are you declaring your income in India stating you are getting money out of forex trading ? Do you know what the Reserve Bank of India and SEBI has to say on it ? Are you aware of the recent happenings in India where even companies who were doing forex trading by collecting money from people are getting in to big trouble just for the same reason as they do not allow forex trading ? Have you walked in to any nationlized bank in India and verified whether they allow transfer money to your forex brokerage account by telling “you want to trade forex” ? Are you aware that is the reason why most retail traders from here are simply using their credit cards to do an online transfer to deposit funds and when the customer service calls to verify they simply say yes they did the transfer for business. I advise you to check your facts before simply dismissing other’s opinion. By telling “forex trading is perfectly legal” in India, you are completely misguiding others. If what you say is true. I will be the first person to appreciate you as i am also looking for something concrete. However, back it up with solid facts. I have faced this situation not too long ago. I also request you to google “Is Forex trading legal in India” You will be surprised on the number of hits it has generated and it is just the debate that goes on and on with no conclusive evidence.
[B][B]Sale and purchase of foreign exchange derivatives in India and abroad and commodity[/B]
derivatives abroad by a person resident in India.[/B]
You see this as opening a forex account with a foreign broker, trade foreign currencies, bring the profit back to India and DECLARE the source of income as forex trading.
I see this as simply walking to forex exchange outlet (Thomas Cook), flip a thousand rupee note and buy some dollars furnishing some details stating I plan to visit foreign countries and hence need foreign currency, go abroad exchange/use them and return with dollars only to exchange it back to rupees after my visit.
The writers of these laws are too clever and make it look vague and misleading only to catch people who take it in a different way and end up in trouble. What I have stated in my previous posts are PRACTICAL DIFFICULTIES I personally faced while trading live and I have some of my friends that I know of too faced this. What you have given in response is a document which as i said can be interpretated in the way we want. After reading your post, I spoke to a chief manager of State Bank of India and confirmed this cannot be done with out RBI permission by individuals like you and me. If you want to discuss further lets do it and clear it up. I am willing to give my phone#/email and the phone# of the Chief Manager that i spoke with (after taking his permission). If you live in India, you would have definitely faced atleast some of the issues that I said I faced. Since you decided to be anonymous, I am unable to come to a conclusion.
Don’t take this discussion personally by using words like “Bruised Ego” and “Senseless”. As I said I appreciate the document you posted and it actually helps to make things clear for all including you and me. The objective of this thread should be to get things clear and not mud-slinging. Atleast, that’s how I want to see it.
I dont want to stoop low by answering. I read just the first few lines and decided not to read further. No use wasting my time. I leave it to people to decide what is best by checking the facts.
I have also googled many sites and I could not find a clear cut answer.
and Finally I am assuming that as of today it seems its illegal for indians to do forex trading. Following are some of the facts I have gathered
If Alpari has office in India then why they open the account with Alpari UK. ( That means something is stopping them to do it)
RBI clearly mentioned it in its publication that money remitance cant be done for the purpose of trading in forex or foreign exchange.
Many forex brokers have offices in India but the employees are not from them, they are just the agents only.
Yes Bank offers some forex solutions but that is only for corporates I think.
I think we as indian should wait for sometime and till then we should practice more with demo account to learn the trick and hit the ball when the doors will be opened for us.