Attention! - Forex trading is illegal in India!

supaTrade · #1 9th September 2007, 12:02 PM

Forex trading is not a permisible transaction for Indians even under the liberalised scheme of $100000. You can land in jail if RBI comes to know. Forex tarding is explicitly banned in FEMA and is non-bailable offence.

I have confirmed this from forex dept. of 5 banks (Pvt. and PSU both). Only corporates are allowed to trade in forex - subject to the condition that they can use only their free dollar reserves. i.e. they cant purchase dollars by converting rupees into dollar, they can use only the existing dollars they have earned in normal business. Also another condition is that they cannot use leaverage of more than 10 times.

Individuals, please do not trade forex as it can land you in trouble (jail). You have been warned.

amarnath · #2 10th September 2007, 07:16 PM

Quote:

Originally Posted by supaTrade

Forex trading is not a permisible transaction for Indians even under the liberalised scheme of $100000. You can land in jail if RBI comes to know. Forex tarding is explicitly banned in FEMA and is non-bailable offence.

I have confirmed this from forex dept. of 5 banks (Pvt. and PSU both). Only corporates are allowed to trade in forex - subject to the condition that they can use only their free dollar reserves. i.e. they cant purchase dollars by converting rupees into dollar, they can use only the existing dollars they have earned in normal business. Also another condition is that they cannot use leaverage of more than 10 times.

Individuals, please do not trade forex as it can land you in trouble (jail). You have been warned.

But this stupid will allow Refco and reliance to act as sub broker and take forex accts from resident Indians

who cares here this is gr8 INDIA

supaTrade · #3 11th September 2007, 03:54 AM

As i have mentioned they can only take propreitary position on dollaars already earned in normal business. They cannot convert rupees to dollars for trading. And also cannot act on others behalf. i.e. no sub-broking.

Why do you think reliance has not started this. eh?

sudhir gupta · #4 11th September 2007, 08:08 AM

Only if beaurocrates (who don't have to worry about their job or money) can also ban ......

RAMDAS · #5 12th September 2007, 03:17 PM

Quote:

Originally Posted by supaTrade

Forex trading is not a permisible transaction for Indians even under the liberalised scheme of $100000. You can land in jail if RBI comes to know. Forex tarding is explicitly banned in FEMA and is non-bailable offence.

I have confirmed this from forex dept. of 5 banks (Pvt. and PSU both). Only corporates are allowed to trade in forex - subject to the condition that they can use only their free dollar reserves. i.e. they cant purchase dollars by converting rupees into dollar, they can use only the existing dollars they have earned in normal business. Also another condition is that they cannot use leaverage of more than 10 times.

Individuals, please do not trade forex as it can land you in trouble (jail). You have been warned.

ManFinancials, RelianceMoney, FXIndia offer FX Accunts for Indian residance.
Ofcourse trading of USD/INR or any INR pair is not allowed in india. when you want to convert USD/INR or any other currency one has to go through banks. all those mention company offer FXTrading under offshoure investment and those don't allow to trade INR.

Read this http://www.rediff.com/money/2007/apr/24rbi6.htm

rasmats · #6 12th September 2007, 10:14 PM

How about NRI's and their relatives? Can they do forex trading? Just curious!

kkeskar92 · #7 16th September 2007, 10:25 AM

Hello,
Thanks for your information. RBI does not allow corporates to sell INR in order to prevent rupee from depreciating and also to prevent fluctuations and also to facilitate the exporters. Why it does not allow retail trading by individuals , one can ony guess.
However, those individuals who want to trade forex will continue to do it anyhow.
NRI's can of course trade forex without permission of any RBI. The spread on USD/INR is so wide that it is not worthwhile to trade it for retail traders, it is good only for corporates as a hedging strategy. True, Mafinancial and reliancemoney alllow retail forex trading.

hemant30 · #8 16th October 2007, 11:11 PM

123456678910

varin11 · #9 20th October 2007, 09:42 PM

Forex trading with banks are generally by expoters in india. Individuals r not allowed.No body is providing forex trading in india.Its only provided abroad as bucket trading with quotes provided by the provider.U acn inveat there,

mani_magar · #10 23rd October 2007, 04:03 AM

As all of u say forex trading illegal in india but all big time players of indian stock market are making huge amount of money by trading in international forex and bullion market. For the small investers Fortune broking solutions help to invest in small market and they also making tons of money so who cares for other thing than money honey. so be prepared for the revolution in india regarding forex which has been already started by FORTUNE BROKING 11 yrs back.

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