Attention! - Forex trading is illegal in India!

WHAT IS E-GOLD TRADING?
Hi every one.
Can any body tell me what is E-GOLD TRADING/investment. Is it legal in India according to SEBI norms. Is their any reputed brokerin India. It is valid in various Nations. Please share your experience about E-gold trading. My other query is - Is their any bank/reputed institute /Jeweler who Buy & sell ONLINE Gold 24 k coins/Bars. Please let me know.
Cheers
Vedkumar, M.S. India.

I'm new out here!

So going through the list of comments it seems that, forex trading of INR based pairs is illegal. But trading any pair such as USD/GBP would be legal as per the RBI/FEMA regulations.

Also if the trading is done outside india, via say remmitancec scheme through a broker abroad, would not breach any regulation.

Could some one confirm my understanding!
Hi folks,

yes sandeep you are right.Even you can trade from India in all pairs except INR based pair.It is perfectly okie for yhou to send remittances outside india as a part of ofshore investments.

Hi Supratrade,

What do you think you are doing trying to confuse people. See this
http://in.answers.**********/questio...8010215AAclDl8

In your own forum belowthe following post is there in post no. 13

I'm new out here!

So going through the list of comments it seems that, forex trading of INR based pairs is illegal. But trading any pair such as USD/GBP would be legal as per the RBI/FEMA regulations.

Also if the trading is done outside india, via say remmitancec scheme through a broker abroad, would not breach any regulation.

Could some one confirm my understanding

post no. 14
yes sandeep you are right.Even you can trade from India in all pairs except INR based pair.It is perfectly okie for yhou to send remittances outside india as a part of ofshore investments.

PLEASE CLARIFY

Please Calrify Supra Trade

Hmm, Ok so trading in forex is illegal. There must be a way out. the act says that there is no bar for an indian opening an account with a foriegn bank and transacting from there. So if I open an account with the bank in say london and send $1000 to that (My account) and trade from there Thai is pay from the london account, what will be the status?

Faltub,

The subject itself is not illegal to discuss, its only trading thats illegal in India. I think its in this forum because forex strategies can be applied to derivatives trading.

Mr Bhatia,

I have consulted the head of forex dealing department at Axis bank and forex expert Mr. D. T. Khilnani. Both of them have confirmed that its illegal.

Forex is not an offshore "investment", its a speculative "trade" ("trading" and "investment" have different meanings) and is hence not allowed. Not only INR but any currency pairs cannot be traded.

Mr Ravi,

Opening a foreign currency banking account is not allowed for individuals. You can confirm that with your tax consultant. Only companies with foreign offices are allowed an offshore bank acount.

How will you show the income/loss from forex on your tax return? Will you write that you have done a forex speculative transaction abroad? Believe me you will get your a$$ in jail.

Even after warning if you still want to trade, you can go ahead and trade, but don't complain if you get caught.

They are all fools of Axis Bank who lacks the knowledge. Go through several officers in a bank and all will give you different varying decisions. Then go to other bank and there also talk to several officers. I also did similar as you did and marked that 100% confidence was not found in anyone's answers. I have my own account in Axis Bank and challenged them in open to come out and debate on this matter. They were so much worried when I sent the complaint to their bank's corporate department and then they personally with Head of Bank too came to my house and begged in front of me to take back the complaint. I just don't talk like you, I believe in pratical results and evidence. So, I hereby confirm that forex trading is allowed if you have account in any country other then India. Because the jurisdiction of India cannot interfere niether the RBI can interfere with the matter which does not falls in their jurisdiction. As far as it concerns to having an online account with a broker in any country other then India, I am 100% percent sure that no one can stop any individual. RBI or you are not GOD who whatever says is final. Understood? So stop arguing and accept it. That's all !

This was about forex trading. Now let's talk of remittance which is different subject then forex trading subject. Remittance as per the Liberalized Remittance Scheme(LRS) is allowed. In LRS, there are several articles and sections under which you can remit money to foreign countries. Once you send money to foreign country then over there again the jurisdiction changes. After the remittance is once successfull , then RBI or Indian Law cannot interfere in the matter, as what ways and where is the money remitted from India was used. Once it's gone then whether you throw it anywhere or use at any place will only be applicable to the law of that particular jurisdiction and then niether Indian Constitution nor RBI is allowed to take any action in matters of foreign jurisdictions.

Here is an example of legal way of forex trading for Indian Citizens:

Open an online share trading or forex trading or currency trading account whose registered Regulatory office is based anywhere out side Indian Jurisdcition. Then open an International Personal Banking Account in the same country bank where you hold trading account and I would like to say that it is allowed as per the LRS scheme FAQ point number 36 mentioned on http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

Once you open a trading account AND also an international personal banking account in jurisdiction which falls outside India, then you can first of all send the money to you international personal banking account using the LRS scheme. And once it's remitted the powers of Indian jurisdiction is over. Then from that bank account simply transfer to your trading account which is also in the same country and does not falls in Indian Jurisdiction. This is the way and legal way to do forex trading using the LRS scheme and within legal limits.

Now tell me what would you like to say?

Sincerely



Kalpesh Sharma
World's Biggest Hacking Expert
Ahmedabad, Gujarat, India.
+91-79-25351208

Your information is wrong "supatrade" One can trade in forex very legally in INDIA and moreover if it was banned why were forex brokers openly advertising in news papers etc.., to open forex a/c's for individuals in INDIA ??? I already have a Forex a/c with a International Broker and they have verified my documents and also I had Withdrew a lot of cash direct to my BANK a/c & they did it successfully.... If it was Banned in INDIA then they might not have accepted my a/c right away & even if they had opened a/c they might not have processed the withdrawal after verifying my documents if it was ILLEGAL in INDIA... SO I request you to update your information or u might have been misguided by someone.... SO i tell all here that don't be scared of this thread and freely trade in forex But it is a bit risky though....

Still no clarity on the status of Forex Trading despite all the discussions. Well - when i posted it is banned in India - I got a negative rep !!!