RBI Guidelines on Forex Trading in India

RBI clearly allows Investment abroad and holding a international bank account for individual upto 50000.00 USD per annum ( including forex trading and stocks ) however , if you plan to send large fund via bank transfer , you will have provide a fill in declaration form to the Bank ( for is available at RBI website) . This rule came up some time in 2005 . I think is now raised to 100K usd per annum please chk this info.

It is already made clear no fund transfer is allowed to trade margin based business with overseas partners and never ever think to get back funds with some scam brokers in forex e.g www.fxopen.info , if need more sad stories remember refcofx

Hello
Forex Traders in INDIA. All the time a lot of discussion bankers of INDIA doesnt allows us
to send/ remmitt money for forex trading, everytime we have to show different reasons for remittence..If margin call is not permitted in INDIA then how the foreign brokers exists here in INDIA, opened their offices in Bombay and rest of INDIA?? Does RBI not aware of their activities abroad ? many brokers are advertising in INDIA to trade forex... I suggest you every trader or interested people ask this question to all forex traders who are located in INDIA... If margin call is not allowed.. then how can you campaign your activities in INDIA???Also those who are concerned with RBI please do ask this to them too..and if any one finds proper reply pls do post here.... vijay22

Hi Guys, I have checked the RBI guidelines on Forex trading and noticed that the following activities are prohibited:

* Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;

* Remittance for trading in foreign exchange abroad;

Source: http://www.rbi.org.in/scripts/faqview.aspx?id=53

Clearly, sending money abroad in connection with Forex trading is not allowed. However, these guidelines do not prohibit Indian residents from trading Forex with an Indian broker or an international broker as long as client monies are kept in an Indian bank account.

I absolutely agree with jungleLion, We are a Rebate & manage fx based Indian Company- www.cashinforex.com , We have many indian clients who does fx transactions with nationalized banks such as>

ICICI BANK , HDFC BANK, AXIS BANK, HSBC BANK But a corporate account is must, with proper justification why you want to send money. Alternative if you have a offshore account in any other country, you can use that money to trade Fx.

RBI cannot restrict any one to withdraw Foreign currency to Indian banks, We withdraw thousands of dollars Per months.

Thanks for the immense useful information.

fx trading is illegal there is no way out but that wouldn't stop us from trading forex, would it? a lot of people trade forex from india and i haven't heard of a single person getting into trouble !

http://www.indianexpress.com/news/rbi-warns-against-illegal-forex-trading-on-internet/774148/