Legal Way to do Forex Trading for Individual Resident Indians

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

Hi friend ,

You are absolutely right.

I agree with you. Reliance money is also doing the same . I talked to them and they said they are doing all their transactions through HDFC bank and these transactions went smooth.
If it was to be illegal in India then i beleive that Reliance group would not have started their deal at all .


Moreover some good news .

SEBI is planning to introduce forex in fno segments in India.

This is what i have copied from their press release pdf , which can be found on their website.




PL find their offiical pdf about the same which BY CLICKING THE FOLLOWING

http://www.sebi.gov.in/Index.jsp?con...&sub_sec_id=25

Note on ‘New Products in F&O Segment’
Contents
1. Mini Contracts in Equity Indices
2. Options Contracts with Longer Life/Tenure
3. Volatility Index and F&O Contracts
4. Options on Futures
5. Bond Index and F&O Contracts
6. Exchange-traded Currency (Foreign Exchange) F&O
Contracts
7. Exchange-traded products to cater to different
investment strategies

Page 6 of 7
6. Exchange-traded Currency (Foreign Exchange) F&O
Contracts
The foreign exchange or Forex market is the largest market in the
world, with trades amounting to more than USD 3.5 trillion every day (mainly
OTC). The high risk due to exchange rate fluctuations is dealt with effectively
by undertaking hedging transactions using derivatives on a currency.
A currency future is a contract in which the parties agree to exchange
cash flows in two different currencies at an agreed upon date in the future. A
currency option is a contract that gives the buyer the right, but not the
obligation, to exchange one currency for another at a predetermined
exchange rate on or until the maturity date.
These contracts when traded on the exchange floors becomes
exchange traded currency F&O contracts.
It is expected that trading of F&O products on organized exchanges,
will help in concentrating order flow and provide a transparent venue for price
discovery. The role of clearing corporation/house means minimal margin
requirements and the low transactions costs, further mitigation of credit risks
by daily marking to market of all futures positions, general lowering of
transaction costs for participants are relatively low. A smaller contract size will
also help Small and Medium Enterprises in hedging their exposure directly on
an exchange.
There are many prominent exchanges that are involved in exchange
traded currency derivatives products. On CBOT and CME Banks often use
exchange traded currency futures contracts to hedge the positions acquired in
OTC forward market. NYSE Euro next is also an prominent exchange that
deals with the cross currency futures and options.
There is a growing need to help small and medium enterprises in
hedging their foreign currency exposure through exchange traded small
denomination currency (foreign exchange) F&O contracts. This will also help
banks to improve their risk management in relation to positions taken in the
over-the-counter (OTC) forward Forex market.
With the possibility of capital account convertibility at some time in
future, it is felt that an enabling framework in this segment could also be put in
place. Further, supervision of Forex F&O trading activities, prescription of risk
containment and market integrity measures could be managed by appropriate
authority. It is also felt that these contracts could possibly be traded on
existing exchanges.

Any one can dowmload the full document from the link provided .

Hope this helps

I doubt your hacking expertise I am saying this because the only language I understand is 1 and 0

when some body says it is illegal i become nervous,when people lik you say it is legal i become happy. i am doing forex since last three years.I am remitting fund to my HDFC bank account only. Till date no body quistioned me.But still i want to be safe, how can i open banking account in foreign.

sk

hallmark, you made life more difficult with font size.

what ever you tell ...others should be able to read and understand...in your case ...difficult to read due to font size .

hope you understand readers difficulites.

regards
suba

You can c/l the original from
http://www.sebi.gov.in/Index.jsp?con...&sub_sec_id=25:

please let me know forex experts in india who trades for their clients