reliable forex broker in india

#21
Forex trading is allowed with respect to INR and cannot be based on EUR-USD.Following is from the rbi site
Liberalised Remittance Scheme
(updated up to September 17, 2010)

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 200,000 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 200,000?

Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 200,000 per financial year (April March) for any permissible current or capital account transaction or a combination of both.

Q.2. Please provide an illustrative list of capital account transactions permitted under the scheme.

Ans.. Under the Scheme, resident individuals can acquire and hold immovable property or 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) 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.


If someone says to deposit in INR and then you are allowed to trade in EUR_USD then he is giving loan in USD and that is external commercial borrowing(ECB) and hence regulations of RBI apply.
More over indian residents are not allowed to trade in instruments that have leverage.
Only possibility is to invest in stocks and also margin funding on the investment is not allowed since that becomes ECB.
Unless and until someone is extremely confident that he will give the taxman a slip time and again, it is not possible to trade non INR currency pairs till the SEP 2010 notification is repealed.
 
#23
Dear members please take care,

1)I was unable to find any authorization of fxcentral on the RBI website as an NBFC, does anyone know their registration number as I couldn't find anything on their website.

2)Even if a company is registered as a NBFC with RBI it does not mean they are authorised or even allowed to offer OTC foreign currency brokerage services. there are several categories for NBFC status and even if a company is a fund based NBFC under the sub-category of AFC or Investment company does not mean the are authorised to offer brokerage services on the OTC market much less FX OTC brokerage services.


If fxcentric can give me there authorisation name and number I will personally go to RBI to clarify what is and what isn't allowed as I live very close to RBI.


I also had simillar doubt and wrote to them,

I got only following link

http://mca.gov.in/MCA21/dca/RegulatoryRep/pdf/Nbfc_Companies.pdf

"Registered as FXCENTRIC BULLION FINANCIALS PVT. LTD. under RBI as NBFC (Non Deposit Based) Registration#:000043 "

I dont know how is related to RBI or how it shows they are authorized.
 
#26
ASIC has a reputation for being tough. You only have to look at how well Australia weathered the recent financial turmoil to see how well their regulation works.

ALthough AUstralia looks robust with OTC trading there are few things people should remember
As a client your funds can be at risk in case of broker failure
Only clients of brokers with ASX participant ( Stock exchange) are covered by National Guarantee fund. OTC brokers are NOT
read the PDS
Recently there was collapse of 47 Million dollars of a FX and CFD broker named Sonray Captial Markets
May be FSA regulation in UK is better!
ASIC sometimes is called a toothless watchdog.
 
#28
guys don't believe any broker who claims to be licensed by RBI to permit fx trading or any person who promotes them or tells u they are authorised ... they probably have vested interest and are just fooling u.

This circular on RBi website dated 21-2-2011 should clarify.

http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=23941

Code:
 The Reserve Bank of India has today clarified that remittance in any form towards overseas foreign exchange trading through electronic/internet trading portals is not permitted under the Foreign Exchange Management Act (FEMA), 1999. The Reserve Bank has also clarified that the existing regulations under FEMA, 1999 do not permit residents to trade in foreign exchange in domestic / overseas markets.

Residents are, however, permitted to trade in currency futures and options contracts, traded on the stock exchanges recognised by the Securities and Exchange Board of India (SEBI) in India, subject to the conditions specified by the Reserve Bank from time to time.

Background

The Reserve Bank had noticed advertisements issued by electronic / internet portals offering trading or investing in foreign exchange with guaranteed high returns. Many companies even engage agents who personally contact gullible people to undertake forex trading/ investment schemes and entice them with promises of disproportionate / exorbitant returns.

The Reserve Bank of India cautions the public not to remit or deposit money for such unauthorised transactions. The advice has become necessary in the wake of many residents falling prey to such tempting offers and losing money heavily in the recent past.

 Alpana Killawala
Chief General Manager
 
#29
C.

I think the new regular only applies to individual traders still Corporates can trade in Forex.
I think corporates use FX only for hedging the inward or outward FX risks
Major banks offer these services to Exporters and Importers
so that is not really trading as retail speculation
 

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