Forex Trading Legality in India

#1
I could only see RBI mention in its circulars that one cannot remit any amount towards margin or forex trading.

So assuming you earned some money through bonus or prize given by the broker which they credit to a live account(it's still not your money), can you trade this money?. And can you withdraw this to your local bank account and paying applicable taxes? and if the account goes to zero you dont reinvest again using INR to resume trading.

If the answer is 'NO and ITS ILLEGAL' to the above two questions, please tell me why?. Also, why would RBI say no to free inflow of a foreign currency in the above scenario. Remember you are NOT investing your own money nor are you converting any INR to trade which is in accordance with the RBI circular.

Im just puzzled when i read statements like - forex trading is illegal in India. If this were true then futures trading to hedge currency risk inherent in INR would also be illegal. I could not find RBI circulars explicitly mention that forex trading in derivatives involving currencies other than INR is 'illegal'.
 
#3
In RBI circular, they have banned remittance of INR to Foreign Exchange, they had not cleared about trading, that you can not trade forex trading.

In my view, yes you can trading forex overseas, but cannot remit money. You can opt many ways for remittance like trading on the name of your NRI relative/friend etc. that they can remit on behalf of you
 
#4
In RBI circular, they have banned remittance of INR to Foreign Exchange, they had not cleared about trading, that you can not trade forex trading.

In my view, yes you can trading forex overseas, but cannot remit money. You can opt many ways for remittance like trading on the name of your NRI relative/friend etc. that they can remit on behalf of you
Wait until your exchanger start to offer trading with eur/usd, gbp/usd and usd/jpy futures with contract size 1000(eur,usd,gbp) from 10.12.2015 RBI has allowed indian exchanges to offer this currency futures contract after then also foreig portfolio investors can trade all currency futures offered on indian exchanges. RBI knows that peapole to try trade other currencies than iINR its good move from RBI.
 

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