Attention! - Forex trading is illegal in India!

[Trade2Learn]

already many resident indian are trading international forex ,deposit and withdrawing too. many broker got office in mumbai too better dont scare of gov..

Can u tell me how indian residents are depositing and withdrawing ??which method are they using for it??

 

[exnessshibin]

Then How Some Broker in India Allows Forex Trading Public

 

[prsrivastav]

hi,

transfering money through netteller a/c to trading site is free.
but on withdrawal up to 10000$ netteller is charging flat rate of 12$ per transaction

 

[aditya1007]

Thanx for explaining the same in details to all members, but Brokers like Phillip Capital provide excellent platform called POEMS to trade in international markets for retail clients in well organised and purely under the rules regulations of the regulator.

 

[augubhai]

http://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=8427

Overseas forex trading through electronic / internet trading portals

RBI/2013-14/265
A.P. (DIR Series) Circular No. 46

September 17, 2013

To

All Category - I Authorised Dealer Banks

Madam/ Sir,

Overseas forex trading through electronic / internet trading portals

Attention of the Authorised Dealer Category - I (AD Category - I) banks is invited to A.P. (DIR Series) Circular No. 53 dated April 07, 2011 and A.P. (DIR Series) Circular No. 46 dated November 17, 2011 wherein AD Category I banks were advised to exercise due caution and be extra vigilant in respect of the margin payments being made by the public for online forex trading transactions through credit cards / deposits in various accounts maintained with banks in India. Further, AD Category-I banks were also advised to exercise due caution in respect of the accounts being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc. in connection with such transactions.

2. However, it has been observed that some banking customers continue to undertake online trading in foreign exchange on portals / websites offering such schemes wherein they initially remit funds from Indian bank accounts using credit cards or other electronic channels to overseas websites / entities and subsequently receive cash refunds from the same overseas entities into their credit card or bank accounts.

3. With a view to further strengthening the restrictions on such online activities which are in violation of FEMA, 1999, AD Category I banks are hereby directed as follows:

(i) All AD Category I banks who offer credit cards or online banking facilities to their customers should advise their customers that any person resident in India collecting and effecting / remitting payments directly /indirectly outside India in any form towards overseas foreign exchange trading through electronic/internet trading portals would make himself/ herself / themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards.

(ii) As and when any AD category I bank comes across any prohibited transaction undertaken by its credit card or online banking customer the bank will immediately close the card or account of the defaulting customer and report the same to Chief General Manager-in-Charge, Forex Markets Division, Foreign Exchange Department, Reserve Bank of India, Central Office, 5th Floor, Amar Building, P.M. Road, Mumbai – 400001 in the format provided in the Annex to this circular.

4. If it is observed that the concerned AD category I bank has failed to carry out the measures as outlined above, Reserve Bank of India may proceed against the defaulting bank under section 11(3) of FEMA, 1999 and take any action as may be deemed necessary.

5. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned. The instructions contained in this circular may also be brought to the attention of the card issuing companies who may also be advised to remain alert against permitting payments for such unauthorized transactions.

6. The directions contained in this circular have been issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)
Chief General Manager-In-Charge

 

[looser89]

rbi cannot caught you if you are smart. mostly forex brokers are open real account online. you can open account with any name. no need of pan card is required for real account opening no verification of identity. no link of primary bank account. you can deposit and withdrawal into two separate account. major problem is when you transfer money directly to forex broker via bank .so you can choose third party transfer or cash transactions

 

[annuvimt]

rbi cannot caught you if you are smart. mostly forex brokers are open real account online. you can open account with any name. no need of pan card is required for real account opening no verification of identity. no link of primary bank account. you can deposit and withdrawal into two separate account. major problem is when you transfer money directly to forex broker via bank .so you can choose third party transfer or cash transactions

Is there any possibility to fund transfer without involving any bank ? I am not aware how this third part (moneybooker or skrill)works..could you please explain how third party and cash transaction works.

 

[RockyRobust]

My TWO CENTS
I'm not trying to debate or argue ... I read even in few other threads, (this one thread is exclusively on this Legality of FX trading) ... Traders discussing this aspect/s ...
There are few things that i want to ... convey ... disclose ...
For all the rules that any Govt makes, there are Two aspects ... One In Letter ... One in Spirit ....
What every one keeps discussing is the Letter Part ... I want to talk about Spirit Part ...
When some one loses money, in any other business (than FX), ONLY HE / SHE loses the money. Whereas, when a FX trader loses money, its not just HE / SHE that loses money, BUT RBI loses part of its FOREX reserves (READ USD). And RBI needs FOREX reserves to pay for Imports, that are actually important for the economy, for the country, for the residents. This is THE reason, why RBI prohibits Indians from FX trading. Now, what if some one making profit, by FX trading? Are they not bringing in all important FX Reserves? Why RBI / FEMA does not talk about it? And who decides what all are very Important Imports? How import of 3G technology has really helped the bottom line of our economy, except that it gave birth to spectrum scam?
Law of the land stipulates lots of things ... How many of us follow all that, that ONLY FX traders are always at the receiving end? How many of us even aware that Law of the Land stipulates that all vehicles should have both left and right review mirrors, how many of us follow that? How many of us are aware that the Law of the Land even stipulates the Tyre pressure to be precise on road?
Law of the land stipulates against Bribery, Dowry, Child abuse .....
As I said, lts not debate .. argue ...RBI has more headaches ... what with now that even MP election are announced ..
Lts make hay when sun shines ......
No Offence ... whatsoever ... to any one .. with this post ....
It is just that FX is where The money is .....

Liked reading your post on Forex Trading. I too agree that until & unless there cannot be direct control on the working of the Forex brokers till then Foreign pairs should not be allowed .

USDINR is quite liquid & good to trade .

 

[allabak]

Hi, I have made a profit of 572$ from 24option.com. I have withdrawn my funds to my HDFC bank. Today I have received a call from Bank asking for the the nature of fund recieved so that they update the RBI. I am very much worried? Please help. I dont want to be tangled in any legalities.

 

[allabak]

Thank you very much. I have replied with the point number 1 you have suggested. I had lost close to 2000$ in a year. This is the first time I was able to double my investment that to this happened in just 20days. Hope all will be sorted out.
Just worried, if RBI questions my earnings.
Is there a way we can do FX trading leagally in India from brokers abroad?