See, if you send money to him for onwards remittance to your trading account it can always be tracked by RBI/ED and then it becomes illegal. But suppose, you have exported some products and services and earned forex, you can always ask the payer to fund that account. Once the money is brought into India then you can't remit it again for margin trading.This is what my understanding is. Please consult a good CA for further clarification.
Can i trade U.S E-Mini DOW Futures from India?
- Thread starter SrZnlu32
- Start date
- Tags futurestradingemini dow
deba72,
Thats all fine legally but I doubt if thread starter is a exporter. He must be a trader. For him he all this is not applicable.
Secondly emini futures is derivatives so the equity part u said is again not applicable to him.
Thirdly am assumin he must not ve been to US and not an NRI
So what option it leaves for him to start trading emini futures which is derivatives?
Thats all fine legally but I doubt if thread starter is a exporter. He must be a trader. For him he all this is not applicable.
Secondly emini futures is derivatives so the equity part u said is again not applicable to him.
Thirdly am assumin he must not ve been to US and not an NRI
So what option it leaves for him to start trading emini futures which is derivatives?
See, if you send money to him for onwards remittance to your trading account it can always be tracked by RBI/ED and then it becomes illegal. But suppose, you have exported some products and services and earned forex, you can always ask the payer to fund that account. Once the money is brought into India then you can't remit it again for margin trading.This is what my understanding is. Please consult a good CA for further clarification.
deba72,
Thats all fine legally but I doubt if thread starter is a exporter. He must be a trader. For him he all this is not applicable.
Secondly emini futures is derivatives so the equity part u said is again not applicable to him.
Thirdly am assumin he must not ve been to US and not an NRI
So what option it leaves for him to start trading emini futures which is derivatives?
Thats all fine legally but I doubt if thread starter is a exporter. He must be a trader. For him he all this is not applicable.
Secondly emini futures is derivatives so the equity part u said is again not applicable to him.
Thirdly am assumin he must not ve been to US and not an NRI
So what option it leaves for him to start trading emini futures which is derivatives?
See, if you send money to him for onwards remittance to your trading account it can always be tracked by RBI/ED and then it becomes illegal. But suppose, you have exported some products and services and earned forex, you can always ask the payer to fund that account. Once the money is brought into India then you can't remit it again for margin trading.This is what my understanding is. Please consult a good CA for further clarification.
Will look for a CA. Will they help me to crack this out?
hahhahahha, that is currency futures. That was legal anyways.
and to answer your question , - NO. you cannot trade US dow futures from India.
I know Interactive Brokers will allow you to open a a/c to trade us stocks and futures on margin , but that is illegal. Simply ask them if its legal or not and they cannot give a answer. They were having a real hard time when i pressed them to give the answer , knowing very well the outcome.
Even a broker like Interactive Brokers is out to scam indians.
one complaint against them and they will shut down business in india. Haha.
and to answer your question , - NO. you cannot trade US dow futures from India.
I know Interactive Brokers will allow you to open a a/c to trade us stocks and futures on margin , but that is illegal. Simply ask them if its legal or not and they cannot give a answer. They were having a real hard time when i pressed them to give the answer , knowing very well the outcome.
Even a broker like Interactive Brokers is out to scam indians.
one complaint against them and they will shut down business in india. Haha.
6. The permissible capital account transactions by an individual under LRS are:
opening of foreign currency account abroad with a bank;
purchase of property abroad;
making investments abroad- acquisition and holding shares of both listed and unlisted overseas company or debt instruments; acquisition of ESOPs (the Scheme is in addition to acquisition of ESOPs linked to ADR / GDR and acquisition of qualification shares); investment in units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes;
setting up Wholly Owned Subsidiaries and Joint Ventures (with effect from August 05, 2013) outside India for bonafide business subject to the terms & conditions stipulated in Notification No FEMA.263/ RB-2013 dated March 5, 2013;
extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 1956.
opening of foreign currency account abroad with a bank;
purchase of property abroad;
making investments abroad- acquisition and holding shares of both listed and unlisted overseas company or debt instruments; acquisition of ESOPs (the Scheme is in addition to acquisition of ESOPs linked to ADR / GDR and acquisition of qualification shares); investment in units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes;
setting up Wholly Owned Subsidiaries and Joint Ventures (with effect from August 05, 2013) outside India for bonafide business subject to the terms & conditions stipulated in Notification No FEMA.263/ RB-2013 dated March 5, 2013;
extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 1956.
Based on what I've read about Interactive Brokers, they're not some cheap forex bucketshop but a legitimate business in many countries around the world & they seem to have a reputation for following laws & procedures very strictly (at times tediously so), & accordingly, their website seems to clearly mention that their International trading account will be a cash account & not a margin account - https://www.interactivebrokers.co.in/en/index.php?f=individualAccounts&p=hybrid
Correct me if I'm wrong but while "margin-trading" is expressly prohibited by RBI (& so might be foreign futures), buying foreign shares for cash (not on margin) seems to be legal. I'm no legal expert but based on this notification of RBI it does seem legal, & RBI allows Indians to transfer upto $250,000 for this or any other permitted purpose - https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10192&Mode=0
And, it seems it's been legal for many years as this leading Indian newspaper outlet would indicate - http://articles.economictimes.india...indian-economy-indian-market-indian-investors
Based on what I've read about Interactive Brokers, they're not some cheap forex bucketshop but a legitimate business in many countries around the world & they seem to have a reputation for following laws & procedures very strictly (at times tediously so), & accordingly, their website seems to clearly mention that their International trading account will be a cash account & not a margin account - https://www.interactivebrokers.co.in/en/index.php?f=individualAccounts&p=hybrid
And, it seems it's been legal for many years as this leading Indian newspaper outlet would indicate - http://articles.economictimes.india...indian-economy-indian-market-indian-investors
Based on what I've read about Interactive Brokers, they're not some cheap forex bucketshop but a legitimate business in many countries around the world & they seem to have a reputation for following laws & procedures very strictly (at times tediously so), & accordingly, their website seems to clearly mention that their International trading account will be a cash account & not a margin account - https://www.interactivebrokers.co.in/en/index.php?f=individualAccounts&p=hybrid
yes you can trade stocks on cash accounts only. This is legal and you can do so with our indian brokers too.
But with IB , here are the conditions ,
Indian Individual Residents (Trading overseas only)
Trade in over 90 worldwide markets (exclusive of the NSE).
Trade stocks (demat), options, futures, etfs (demat) and etc.
These are cash accounts only.
Must be 18 or older to open a cash account.
A minimum equity deposit in cash or stocks of $5,000 or the equivalent of whatever currency we support (exclusive of INR).
Minimum brokerage fees per month, $10,00, per month.
Brokers/advisors can only open an account through IB via an offshore entity. Institutional/proprietary trading groups can open an account with IB (India) Pvt. Ltd. Contact an IB India sales representative for more details.
These 2 conditions are contradicting. How can you trade futures on a cash account.
Now IB guys are not stupid to make such silly mistakes on their site. They are "professionals" right. So what does this mean?
Call them and ask, you will know for yourself.
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