Attention! - Forex trading is illegal in India!

[money$]

hi everybody I am ashok from delhi.
I am new in this field and I want to do this trading .shud I do or not,I do not want to dothis if it is against the Indian Law. pl sugest.

Driving the bike without helmet, and car without seatbelt is also illegal. Forget the crap (there are too many factors to deter a person from taking a bold and independent move), just focus on learning. Hide yourself in the sand, keep learning and trade fearlessly. Good luck to you friend.

 

[mercyman007]

Hello all dudes (Insects...me also )of fx...

Meri dimag ka dahi bangaya booss!

I read all posts n coments, but there is still question ( million$ question) IS FOREX TRADING LEGAL OR ILLEGAL IN INDIA/ INDIAN RESIDENT?


I have one idea to solve this question. I need support n suggestions from all u friends. I want to ask for information about its legacy to RBI under Right To Information Act. If they give positive answer i will celebrate this day like my B'day every year .

Do u think guys this can solve our curiosity???

Dr. Dev

 

[naga_thetrader]

TRANSFERRING FUNDS FOR FOREX TRADING ABROAD IS PROHIBITED AND HENCE IT IS ILLIGAL

as per
http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

Q. 30. 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) Remittance by a resident individual for setting up a company abroad;

vi) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;

vii) 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

viii) 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.

 

[Tavnaz]

TRANSFERRING FUNDS FOR FOREX TRADING ABROAD IS PROHIBITED AND HENCE IT IS ILLIGAL

as per
http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

Q. 30. 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) Remittance by a resident individual for setting up a company abroad;

vi) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;

vii) 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

viii) 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.

Are bhai, the one who want to trade forex are already doing it.
And the ones who want to trade forex don't worry they just find a way.
And the people who started this thread and continuously pund this thread with threatening messages are advised to keep this s***t to themselves.

Why the hell you are continuously day after day fighting over legality of forex.

What is legal?
Anything against law,but how is forex against law,tell me,if someone is going to send 1000-3000 $ outside and trade he will bring it back here and will pay tax on it plus more money will come.
Without Risk there is no reward
Is freedom illegal,if someone wants to use his forex skills to fund his retirement is he a thief a criminal?
This country was formed and countries were formed to unite people not rule over them just because India is so damn weak it can't maintains its forex reserves properly.
I want you to close this thread Moderators they are wasting time,they don't want to trade forex they are just fighting with each other creating a mockery in front of canadian and other NRI who read this thread that people who live in India are so big a fools that they can't judge illegal and legal.
Regards
Tavnaz

 

[naga_thetrader]

dear tanvaz,

i can understand ur frurstration.

you talked about What is legal?

well, any rule which has been set by the authority and following it as a citizen of a country is legal and going against it is illegal.

yes, government wants to its people to make money for all purposes. but it does study the situation continuously and only then takes steps to control or decontrol any issues.

People have only lost money in forex and since forex is an OTC or off exchange transaction, there is no guarantee of your money and transaction and eventually people lose money and then they complain saying government is not working.

just think of this example.

even if 0.1% of indians ie. approximately 1500000 residents transfer $5000 each, India will lose a forex reserve of around $7.5 billion. (under liberalised scheme, one can transfer $200000 or approximately INR 1 crore, then think of the amount involved)

So, if you are confident of getting your money back to india with profit, i show you a easier route.

simply mention your purpose for sending money abroad in form A2 as investment abroad by indian resident and transfer to your broker abroad. and then every month count $$$$$

i only uploaded that for education purpose as most of the investors are not sure of legality of transfering funds for trading forex.

 

[aryabhatta]

Hello all dudes (Insects...me also )of fx...

Meri dimag ka dahi bangaya booss!

I read all posts n coments, but there is still question ( million$ question) IS FOREX TRADING LEGAL OR ILLEGAL IN INDIA/ INDIAN RESIDENT?


I have one idea to solve this question. I need support n suggestions from all u friends. I want to ask for information about its legacy to RBI under Right To Information Act. If they give positive answer i will celebrate this day like my B'day every year .

Do u think guys this can solve our curiosity???

Dr. Dev

Dear Mercyman,

naga trader is right upto sept there was a lot of ambiguity but when new guidelines were released it is clearly illegal to transfer money through lrs scheme for the purpose of forex trading. You will also face trouble when asking for payout which was not there earlier. There are lot of obstacles which most new entrants are not aware of in the forex world so dont listen to saab theek hai sab theek hai bullshit of newbies and i will advise you its better to stay with exchange traded products.

If you have any doubt of what i say what you can do is email Dr. Sivaraman, he is one the foremost expert on forex in india in that he is one of the pioneers of forex awareness in india when it was still in its infancy and writes widely for many foreign publications he also conducts educational seminars for some websites. I have not attended any of them and i am not aware of his profitability but i am aware of his experience in the field.

Alternatively you can seek advice from legal experts if you still have any doubt. I think what i have suggested our appropriate solutions.

There is in fact a way to trade forex legally from india by avoiding lrs but i would not advise it to anyone as rather i advise you trade exchange traded products.

 

[sanjay_arora]

No matter reliance is the Indian representative or anybody else....it is you who are remitting abroad....risk is yours and its three times the offense (max. FEMA damages) What is not clear is what it will be imposed upon...the remittance made or the turnover of the trading account.

At the time of remittance you are remitting to a bank account abroad and you do not have any intention of forex trading or trading of margin...so the remittance is perfectly legal....that's the route these guys seem to be taking.

If later on you digress from your path and open a FX account, that's your outlook.

Actually hundreds of people seem to be opening these accounts regardless of the legality of it.

Many are taking the bank account route and intend not to report opening of FX account. Others are taking a more direct route.....totally bypassing remittance altogether.....if you have connections, you pay here and get an account through Dubai.....if not, just spending 18 odd K and flying to Dubai for a day plus expenses.

The way reliance et el are representing foreign companies, it seems that the writing on the wall is clear....India is going to open up....these guys are always in the know.

If it happens that way...all are in the clear as no body is bothered about small amounts in India anymore. Forex reserves are too comfortable for that. However, if one dead cat's smell comes in the limelight, we are going to see a blanket RBI enquiry to banks for information into these remittances and mass prosecutions. You see none of us are son-in-laws of those walking on red carpets....when media howls of forex hawala scandal...they are going to be quick to act...afterall....its not their conduct that is being enquired into.

I think there's enough action in India's markets, to bother with doing something illegal. However, one gentleman in the posts above seemed too hot & bothered to invest in forex, regardless of the law of the land....well the routes have been pointed out....go ahead!

However, for those interested to break laws, heroin etc. are more lucrative than forex....why stop at forex

Sanjay.

 

[smartboy1jan1982]

However, for those interested to break laws, heroin etc. are more lucrative than forex ...why stop at forex

:rofl: Well said.

 

[mgattani]

Hi All


I am presently in US and planning to move to India. I have an account in Infinity Futures for trading in S&P Futures, Forex Trading and Metals Trading.

I have the following questions:

a) Can I maintain my Infinity Futures account?

b) Can I withdraw my profits and get it transferred to India? Is there any legal issue.

c) I will be paying taxes in US and can I get the double taxation benefit for Indian taxes. I will be paying more taxes in US compared to Indian taxes.

Any help will be appreciated.

Thanks
Manoj Gattani

 

[preetksgill]

Alpari has

• NSE membership and permitted to handle currency trading by NSE