Is forex trading legal in india?

[vagar11]

zerodha is allowing us to trade currencies? Is that legal?

 

[Shikamaru]

zerodha is allowing us to trade currencies? Is that legal?

It is legal to trade Forex in india,
But limited to USRINR, EURINR, JPYINR, GBPINR pair only....
Other Forex pairs is not legal to trade and wiring profit to india

 

[varunkumarsharma]

Yes,It is legal to trade forex with Indian Exchanges like NSE, BSE, MCX-SX where they currently offer these four pairs(USDINR, JPYINR, GBPINR, EURINR) in Derivatives (Futures and Options Segment). So if you are trading with Indian Brokers whom have membership with the above mentioned Indian Exchanges it is perfectly legal. And Also it is perfectly legal for Indian Retail traders to invest in overseas equity markets. But margin trading in overseas is suppose to be illegal as per RBI regulation guidelines.
Individuals are strictly forbidden from electronic and internet based foreign trading. The reason behind it that it brings high returns to them but at high charge that is the imprisonment . The individual traders at India have also been warned by the RBI against the online trading portals which offer these alluring or attractive outcomes of high gains but do not reveal to the traders that they are trapping themselves in an illegal activity considered by their state government.
One can follow this link article for better understanding:
http://www.wisdomtimes.com/blog/forex-trading-in-india/

 

[tamaa]

but what i dont understand is that there are intian traders trading off shore broker, like good broker like hotforex.com etc, and if im not mistaken the profits are transfered through webmoney, neteller and skril which will be reflected as remittance money. how come?

 

[Baker1991]

Method is good to transfer money via Neteller or Skrill.

 

[Obelixtrader]

RBI has allowed in december to trade EUR/USD, GBP/USD and USD/JPY as a futures contracts. Contract size will be 1000. Exchanges working on it.To the end of the year you will be trading this currency futures on NSE,BSE, MSX.
link from RBI
https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=10172&Mode=0

 

[Hulu Girl]

Currency pairs involved with INR can be traded legally in India. Its illegal because so far RBI restricted to trade in any kind of overseas margin trading segment.

 

[billi]

Its quite confusing as forex trading legal in INDIA or not..? however i trade online and make some easy money while in my free time. I usually receive the amounts to my skrill or either in my neteller within one business day.

 

[karthik_sri]

There are some sorts of regulation in india.
Trading in Forex-INDIA


"Forex means currency pair trading. Within Indian confinement, we could trade anything bench-marked against INR.

It is legal to trade with Indian Brokers providing access to Indian Exchanges(NSE,BSE,MCX-SX) providing access to Currency Derivatives. Currently the trading instruments are USDINR,JPYINR,GBPINR,EURINR.

Trading in Forex -MAJOR currency pairs

A widely traded currency pair is the relation of the euro against the US dollar, designated as EUR/USD. The quotation EUR/USD 1.2500 means that one euro is exchanged for 1.2500 US dollars. Here, EUR is the base currency and USD is the counter currency.

But its not possible for an indian to trade in this pairs.

Reasons

Reserve Bank of India is short of dollar denominators. That means, in-case you trade eur/usd with "out of india" players and, if you loose you would buy usd from RBI and send it away. This leads to increase in fiscal deficit( lack of foreign currency reserve).

If everybody in india trades forex with 'out of india' players, assuming the notorious nature of trading where 90% of traders eventually loose, RBI stands to loose alot of dollar. To compensate the outflow, our government will be forced to buy more US dollar, by selling INR at cheaper rates. Thus leads to devaluation of our INR."

Well said:clapping:

 

[NCDEX Boss]

EUR/USD, GBP/USD, USD/JPY has been approved by SEBI and RBI for trading on Indian exchanges and will soon start trading on Indian Exchanges.
http://articles.economictimes.india...ency-futures-market-currency-option-yen-rupee