doubt on Forex Trading

#1
Hi Friends,

My friend(NRI) is having forex trading account in US and he is living in US. He requested me to trade forex on behalf of his account in USD combinations.

As per my knowledge it is offense of trading USD combination.

Could you please help me that can I do trading on behalf of him in India.

thanks,
Mullangi
 

natjay

Well-Known Member
#3
Hi Friends,

My friend(NRI) is having forex trading account in US and he is living in US. He requested me to trade forex on behalf of his account in USD combinations.

As per my knowledge it is offense of trading USD combination.

Could you please help me that can I do trading on behalf of him in India.

thanks,
Mullangi
Never trade on behalf of others specially when money matters and speculative trading is concerned. A lot of things can go wrong.

Besides, there are RBI / FEMA rules that prohibit resident Indians from this kind of arrangement. And lastly, there's the I-T department and even your local bank who might ask questions.
 

howardroark

Well-Known Member
#4
Hi Friends,

My friend(NRI) is having forex trading account in US and he is living in US. He requested me to trade forex on behalf of his account in USD combinations.

As per my knowledge it is offense of trading USD combination.

Could you please help me that can I do trading on behalf of him in India.

thanks,
Mullangi
RBI / FEMA rules prohibit Resident Indians to convert Rupee into other currency for speculative trading ...
If a westerner has a FX account, YOU CAN CERTAINLY TRADE ON HIS BEHALF ... Yours faithfully is doing it since 6 years without breaking a sweat ..
When it comes to filing IT returns, you have to take all your income sources into consideration ... FX Income as a stand alone income does not matter at all
Shoot if you have any FX trading related doubts ...........
 
#6
RBI / FEMA rules prohibit Resident Indians to convert Rupee into other currency for speculative trading ...
If a westerner has a FX account, YOU CAN CERTAINLY TRADE ON HIS BEHALF ... Yours faithfully is doing it since 6 years without breaking a sweat ..
When it comes to filing IT returns, you have to take all your income sources into consideration ... FX Income as a stand alone income does not matter at all
Shoot if you have any FX trading related doubts ...........
From 10.12.2015 RBI allow specilative trading with EUR/USD,GBP/USD and USD/JPY as a futures contracts with contract size 1000USD,GBP and EUR this contracts will be trades on NSE,BSE and MSX exchange. You must wait when this exchanges make public annoucment when they start to offer this futures contracts.
 

ztas

New Member
#7
RBI / FEMA rules prohibit Resident Indians to convert Rupee into other currency for speculative trading ...
If a westerner has a FX account, YOU CAN CERTAINLY TRADE ON HIS BEHALF ... Yours faithfully is doing it since 6 years without breaking a sweat ..
When it comes to filing IT returns, you have to take all your income sources into consideration ... FX Income as a stand alone income does not matter at all
Shoot if you have any FX trading related doubts ...........
I have couple of questions,
1, how do you get paid?
a, I mean in INR or USD?
b, And in what mode, How do you keep the receipts for the income?
2, How do you declare your forex income?

thanks
 

Shikamaru

What a drag!!!
#8
I have couple of questions,
1, how do you get paid?
a, I mean in INR or USD?
b, And in what mode, How do you keep the receipts for the income?
2, How do you declare your forex income?

thanks
You can trading legal pair in CDS segment just like NSE, MCX
Your profit will paid in INR, it will monitored through PAN account
Receipts income is profit from trading with respect to IT section
Declaration is Profit under IT section for Share trading profits.
 

ztas

New Member
#9
You can trading legal pair in CDS segment just like NSE, MCX
Your profit will paid in INR, it will monitored through PAN account
Receipts income is profit from trading with respect to IT section
Declaration is Profit under IT section for Share trading profits.
Thanks Shikamaru, i understand it trading with Indian broker.

Im curious on his approach.
 

howardroark

Well-Known Member
#10
I have couple of questions,
1, how do you get paid?
a, I mean in INR or USD?
b, And in what mode, How do you keep the receipts for the income?
2, How do you declare your forex income?

thanks
1. I get paid in INR ... My clients wire transfer my share to my bank account
2. I declare as professional charge for portfolio management ...

Feel free to ask any doubts ...
Regards,
 

Similar threads

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Name:Phone:
Email:City:
State:
Are you a day trader?