Is forex trading legal in india with abroad brokers ?RBI circular

[robkey]

Hello ,

This is the latest circular by RBI given for forex trading . I cant understand the points clearly . Any Charted accounts who can read it and explain to our users weather this is legal or illegal to trade Forex with abroad brokers ?


http://www.mediafire.com/?dup1h3i1i4p7t1q


Looking forward for your replies

 

[vetmalar]

I think this circular is for institutional people..????

 

[sumeetsj]

Even if its not someday there will be a regulation to it.

 

[pkdoo7]

it is 100% legal , lets move ahead and make profit their is no need to worry about that .

 

[manishala]

the link is dead please provide that circular

 

[manishala]

As per RBI regulation forex trading in India with abroad brokers is illegal. But can it be legal if any NRI transfer fund to us and do trade using that money by individual ??

 

[PipMaster6]

Have you guys tried BeamFX in New York? I live in India and have been trading forex with them for 2 months now. Funds are held in Citibank - very safe.

 

[global trader]

Pip Master, Your comment about "Funds are held in Citibank - very safe" has few technical issue
Ok Funds held in CItbank wil be covered by FDIC
BUT Beam FX as Fx broker is NOT and repat NOT covered by SIPC insurance
Current SIPC only covers fund held with US brokers who offer equity trading and NOT FX or even Futures brokers
what that means is BEam Fx could go out of business you coudl be a simple creditor SIPC does not cover you
SO..

 

[global trader]

As per RBI regulation forex trading in India with abroad brokers is illegal. But can it be legal if any NRI transfer fund to us and do trade using that money by individual ??

When you say NRI transfer fund to us meaning NRI open an account on his name? aborad
Ok even if that is done
A)You got to get your money to him/ her that in itself might be legal from your point but that NRI wil have to explain to his country Tax authority .. where he got th emoney from?

2) When you get profits from him you still have to declare that money as your income and pay Indian tax
Worst first that NRi has to pay Tax in his country on those profits
SO unless your profits are sky high it may not be worth it and may not be still legal for a resident Indian