HI this is naveen from india a iam willing to trade forex.but somebody says forex trading is illegal in india…ple kindly suggest me weather forex is legal in india…anybody trade forex in india
Yeah, It’s illegal there. But Lot of people trading from india. The authority will catch you only when you bring large chunk of money to india. Until then there is no need to worry. And ofocourse no one making such money from trading forex.
If you can send money to abroad for the trading reason then you can surely bring money to your bank account. You know what I mean?
Good luck
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thanks thanks for u r advice…u r clear my mind
Don’t worry mate. So many ppl trading FX without caring about the regulations. This is not only for India but also for few other Asian countries as well. Trade Forex in a legitimate way. For an example don’t try to get others deposits and trade for them. Trade silently & Quitely.
I heard this some time ago, but I thought it was a joke. Now I know its true. I thought forex is a free business that anyone from any country can engage in. Why would the government restrict people from trading in the liquid market?
I did hear about it, but I am aware of plenty of traders based in India. I am not exactly sure how to advise you here, but would have to agree that as long as you can send money from India to other countries using a payment method supported by the broker of your choice you should be able to trade there as well (unless you are not able to access broker’s and your IP provider blocks them).
It is sad that the Indian government would actually make forex trading for its citizens illegal. I would suggest you would be very careful.
Major brokers will accept customers from India. (This is not like some countries i.e. Iran where major brokers will not accept customers from) The trick is getting your money from India into the brokers.
I guess it depends on if India blocks online payment processors and vice versa. In case they don’t then there should be no problem on that front.
No Forex trading is not illegal in India and to this date, there is no restriction on indian traders trading on retail platforms. The only issue is that they have instituted a cap on the amount of $ deposit but that’s about it. As far as Indians trading in international market, that does not make sense and if that was the case, Indian companies, including individuals would not be able to hedge against inflation or invest overseas…
I hope this has clarified it for all traders based in India.
first why is it made illegal, it is accepted in other countries. well if your country says is illegal then you should stick to that. prevention is better than cure, if you know what i mean!
If you trade forex online. It should be fine. Unless it involve a very large amount, then probably attract attention from RBI. Else individual trader shall be just doing fine.
:15:
It is illegal and the “risk” is damn high with jail term of up to 4 years. You can “legally” trade Forex Futures in Rupee via many banks (e.g. SBI).
Recently there is increased observation from RBI on these illegal online currency traders. So be careful. Follow rules and online forex trading may not be worth the risk.
Hi Myself from India and surely Forex trading is illegal in India and the nature of this offense is very serious which comes under FEMA ( Foreign Exchange Monetary Act) and is only bailable by the courts, payments to brokers by credit card have also been banned as it was the most favorite way to send money in dollars, my monthly credit card bill clearly states that i cannot use my credit card for forex trading. so all in all u cannot start a new a/c,
The a/c which were opened earlier b4 this regulation are working and the money is also coming to India as the RBI ( Reserve bank of India) has no way to determine the source of ur income i.e forex trading, ur bank statement will only show that money sent from some foreign bank to some Indian bank, RBI will only launch an investigation if large some of dollars is coming in ur bank a/c without any proper explanation. Thanks
Date: Nov 17, 2011
Overseas forex trading through electronic / internet trading portals
Liberalised Remittance Scheme
(updated up to November 13, 2013)
The Reserve Bank of India had announced a Liberalised Remittance Scheme (the Scheme) in February 2004 as a step towards further simplification and liberalization of the foreign exchange facilities available to resident individuals. As per the Scheme, resident individuals may remit up to USD 75,000 per financial year for any permitted capital and current account transactions or a combination of both. The Scheme was operationalised vide A.P. (DIR Series) Circular No. 64 dated February 4, 2004
PART A :
Q.1. What is the Liberalised Remittance Scheme of USD 75,000?
Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 75,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
Q.2. Please illustrate the capital account transactions permitted under the scheme.
Ans. Under the Scheme, resident individuals can acquire and hold shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the Scheme.
Q. 3. What are the prohibited items under the Scheme?
Ans. The remittance facility under the Scheme is not available for the following:
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;
ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;
iv) Remittance for trading in foreign exchange abroad;
v) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;
vi) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non co-operative countries and territories”, from time to time; and
vii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
viii) With effect from August 14, 2013, the scheme is not available for remittances for acquisition of immovable property directly or indirectly outside India.
Why is it illegal to trade forex in India?
Since my last reply in this thread, the RBI has since made it illegal to trade forex in india, though it is more of a partial ban. What the RBI has done is to ensure its citizens are protected against margin calls from shady brokers, fair enough. But does this mean that trading forex is a no go in India? Not really.
Indian citizens can now trade forex with Indian brokers and trade only a few select pairs. After this ruling, nearly every brokerage has moved to setup shop in India.
For traders seeking to trade forex in india, they can either earn some USD and open an account with an online payment portal or trade in forex with india based brokerages. In addition, they can also trade the futures through the regulated bank accounts…
Hope that clarifies it.
Date: Nov 17, 2011
Overseas forex trading through electronic / internet trading portals
Liberalised Remittance Scheme
(updated up to November 13, 2013)
The Reserve Bank of India had announced a Liberalised Remittance Scheme (the Scheme) in February 2004 as a step towards further simplification and liberalization of the foreign exchange facilities available to resident individuals. As per the Scheme, resident individuals may remit up to USD 75,000 per financial year for any permitted capital and current account transactions or a combination of both. The Scheme was operationalised vide A.P. (DIR Series) Circular No. 64 dated February 4, 2004
PART A :
Q.1. What is the Liberalised Remittance Scheme of USD 75,000?
Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 75,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
Q.2. Please illustrate the capital account transactions permitted under the scheme.
Ans. Under the Scheme, resident individuals can acquire and hold shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the Scheme.
Q. 3. What are the prohibited items under the Scheme?
Ans. The remittance facility under the Scheme is not available for the following:
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;
ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;
iv) Remittance for trading in foreign exchange abroad;
v) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;
vi) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non co-operative countries and territories”, from time to time; and
vii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
viii) With effect from August 14, 2013, the scheme is not available for remittances for acquisition of immovable property directly or indirectly outside India.
There are a few forex brokers luring/trying to lure Indian clients to open accounts and remit money via credit cards.
Many of the Major online brokers in India have stopped their forex business and now routing customer orders of Indian customers on NSE or MCX-SX which is permitted by the Government of India.
Clients who are trading forex abroad are trading at their own risk and in violation of FEMA regulations
The RBI has never made it legal to trade forex on International markets. All thos brokerages have shut shop and now routing customer order on the local currency exchanges NSE and MCX-SX.
Date: Nov 17, 2011
Overseas forex trading through electronic / internet trading portals
Liberalised Remittance Scheme
(updated up to November 13, 2013)
The Reserve Bank of India had announced a Liberalised Remittance Scheme (the Scheme) in February 2004 as a step towards further simplification and liberalization of the foreign exchange facilities available to resident individuals. As per the Scheme, resident individuals may remit up to USD 75,000 per financial year for any permitted capital and current account transactions or a combination of both. The Scheme was operationalised vide A.P. (DIR Series) Circular No. 64 dated February 4, 2004
PART A :
Q.1. What is the Liberalised Remittance Scheme of USD 75,000?
Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 75,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
Q.2. Please illustrate the capital account transactions permitted under the scheme.
Ans. Under the Scheme, resident individuals can acquire and hold shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the Scheme.
Q. 3. What are the prohibited items under the Scheme?
Ans. The remittance facility under the Scheme is not available for the following:
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;
ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;
iv) Remittance for trading in foreign exchange abroad;
v) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;
vi) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non co-operative countries and territories”, from time to time; and
vii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
viii) With effect from August 14, 2013, the scheme is not available for remittances for acquisition of immovable property directly or indirectly outside India.