Attention! - Forex trading is illegal in India!

[mr12323]

an latest scam in tamilnadu ,ozonetrading.com, forex scam ,cheated my friend RS 97,00,000 ( also they reveresed the profitable position to an loosing one )

 

[Galts Gulch]

an latest scam in tamilnadu ,ozonetrading.com, forex scam ,cheated my friend RS 97,00,000 ( also they reveresed the profitable position to an loosing one )

97 Lakh Rs?

 

[global trader]

Zulu Trade is a copy tool and you can bea registered trader but only using a demo account and others may follow you and Zulu will pay you commissions so it is just sort of consultancy income! you are not actually trading your money overseas ( assuming it is illegal to do so for Indian residents)
It is same as if you were providing consulting in any other field accounting, engineering , design ..
I am no expert on Indian tax but using basic logic ..

 

[rourkem]

What about if you get caught? What kind of consequences would a trader be dealing with if I may ask?

 

[Blaiserboy]

I think there is a way now to get around reguilations as one of my good friends is a trader from India

 

[aryabhatta]

I think there is a way now to get around reguilations as one of my good friends is a trader from India

Is your friends name Robert Vadra?

 

[trade2411]

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

Agreed that trading foreign exchange derivatives is illegal . I think trading commodity derivatives seems legal though . Here is a list of prohibited transactions from " FOREIGN EXCHANGE MANAGEMENT ACT SCHEDULE 1"

- " Sale and purchase of foreign exchange derivatives in India and abroad and commodity derivatives abroad by a person resident in India. "

it says, commodity derivatives cannot be traded abroad by a person resident in india , so clearly it doesnt say anything about someone trading foreign commodity derivatives in india ,.

Someone please correct me if am wrong.

 

[trade2411]

I think its high time our Govt allowed indian traders to trade freely in all sorts of instruments at all sorts of markets . We are missing on huge liquidity that is available in foreign markets , and for quick trading style foreign markets suit much better than indian markets.

May be our govt doesnt want any of us to feature in market wizards

 

[nikki5_me]

Remittance for trading in foreign exchanges ...Does that mean we cant trade for prop trading firms from India? Is it a crime to trade for prop trading firms?

Please do reply , just curious about it, coz I found many prop trading firms operating from India and recruiting Indians

 

[aryabhatta]

Remittance for trading in foreign exchanges ...Does that mean we cant trade for prop trading firms from India? Is it a crime to trade for prop trading firms?

Please do reply , just curious about it, coz I found many prop trading firms operating from India and recruiting Indians

No its not illegal.