Attention! - Forex trading is illegal in India!

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supaTrade

Active Member
#1
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.

According to http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

 
A

amarnath

Guest
#2
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 :D who cares here this is gr8 INDIA
 
#3
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?
 

RAMDAS

Active Member
#5
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
 
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kkeskar92

Well-Known Member
#7
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.
 
#9
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,
 
#10
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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