Forex Is Legal In India

http://www.reliancemoney.com/Forex/

If reliance allows it then forex trading is 100% legal in India

Hmmmmmmmmmmmmmmm Still not convinced ! Is reliance actually trading Forex?? Link is not opening

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Wednesday, October 24, 2007

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Forex

The global foreign exchange market is the biggest market in the world. The nearly USD 2 trillion daily turnover exceeds the combined turnover of the entire world''s stock and bond markets.

There are many reasons for the popularity of foreign exchange trading, but among the most important are, the high liquidity 24 hours a day and the very low dealing costs associated with trading. The market is so large that a handful of players can never influence its outcome

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Hi all,

Reliance may be a big corp on its own in India but it doesn't mean if reliance acts as IB to CMC plc or some other broker's overseas it become legal, Reliance is not a ECN broker for retail forex and they are just a Introducing broker to overseas broker which mean they just refer you to them with their corporate label and reliance doesnt hold your funds in India as Indian Rupee account and its wire transfered to overseas broker account in $$ , so when making withdrawals of big sum its comes just RBI norms and i am not talking about 100$ and 2000$ mini traders for this issues , so stay cautious and reliance or any other wont come to help when you caught under FEMA regulations,

Also its clear on RBI norms transfering money for margin trading is illegal and not permissiable btw FMC which regulates commodities trading in India already banned trading using overseas futures and keeping their terminals in India

Also in forex there is lot of scam artist kind of brokers now a days ( e.g read a recent sad story www.fxopen.info ) and i dont recommend any forex broker unless you have capability to trade interbank access with A++ rated banks directly if you have such liquidity

Even Refcofx created a big problem few yrs back and they are now no more in biz , they are one of largest liquidity provider but went bankrupt , so think twice if you prefer forex for retail trading

There is lot of eg i can point about fx brokers in general

PS: JUNGLELION Is a scam artist who act as IB to above scam broker

Hi!
Can you please post or refer to any RBI circular/Guideline on this issue?

Best Regards,
--Ashish

Hi,

It is some were around this forums posted already, i don't remember were is it exactly and if i found time i will search and post it here or PM you

That will really be helpful because as far as my understanding goes, The Liberalised Remittance Scheme (Now it permits a remittance of USD 2,00,000 to resident Indians) is available for making remittance/s for [/b]any permissible current or capital account transaction or a combination of both. [/b] Further, they can use it to purchase any asset without permission of RBI.

Refer- http://www.rbi.org.in/scripts/FAQForex.aspx

It is not available for purposes specifically prohibited (Schedule I) or regulated by the Government of India (Schedule II) of Foreign Exchange Management (Current Account Transactions) Rules, 2000

None of these specifically ban trading in forex. (Refer:- http://www.eximkey.com/contents/show...p?pageid=15322)

Hence, I would be glad to know how Forex Trading using the "Liberalized Remittance Scheme" is illegal.

Best Regards,
--Ashish

THANKS FOR GIVING ME A NEGATIVE REP. I PITY ABOUT YOUR CHOICE OF USE OF REP SYSTEM !!

I had a talk with Reliance People and they have yet not started trading Forex Online. Only physical buying selling of Forex has started and not trading based on Margin.

It seems reliance is offering you special privilege !!

Great Connections to ANil !

Margin trading is what is banned, not forex trading per se.

http://www.rbi.org.in/Scripts/Notifi...Id=3500&Mode=0

All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.

Retail forex is nothing but margin trading with OTC brokers which is leveraged business