Individuals cannot trade in forex market: RBI
- Thread starter ag_fx
- Start date
Hi,
I have no experience in trading so please correct me if i am wrong.
For this matter i had discussion with one broker of FXCentral (before opening a/c with FXCentral I wanted to discuss about whether doing forex trading is legal in India or not, I forwarded RBI press release PDF to him).
He said as per document
The Reserve Bank of India has today clarified that remittance in any form towards overseas foreign exchange trading through electronic/internet trading portals is not permitted under the Foreign Exchange Management Act (FEMA), 1999.
His answer was remittance is sending money outside India. As FXCentral is registered with RBI and to open A/C with them, for forex trading, we need to deposit money in their Axis bank A/C, India. You will not send money outside India. So doing forex trading with FXCentral is legal and you can show profit as your income for tax calculation also.
As I mentioned above, I have no experience in trading so please correct me if i am wrong. Pls give your comment whether he is saying right or not.
Thankx
I have no experience in trading so please correct me if i am wrong.
For this matter i had discussion with one broker of FXCentral (before opening a/c with FXCentral I wanted to discuss about whether doing forex trading is legal in India or not, I forwarded RBI press release PDF to him).
He said as per document
The Reserve Bank of India has today clarified that remittance in any form towards overseas foreign exchange trading through electronic/internet trading portals is not permitted under the Foreign Exchange Management Act (FEMA), 1999.
His answer was remittance is sending money outside India. As FXCentral is registered with RBI and to open A/C with them, for forex trading, we need to deposit money in their Axis bank A/C, India. You will not send money outside India. So doing forex trading with FXCentral is legal and you can show profit as your income for tax calculation also.
As I mentioned above, I have no experience in trading so please correct me if i am wrong. Pls give your comment whether he is saying right or not.
Thankx
This is open to interpretation.
Here is the text from RBI's website:
As you can see, the Fxcentral guys quoted only "THE RELEVANT" part of the circular and omitted the tricky part. If you think any Business entity operating a business would openly admit that they are out of business, or doing something not completely white...then my friend....you are not living in real world.
Here is the text from RBI's website:
As you can see, the Fxcentral guys quoted only "THE RELEVANT" part of the circular and omitted the tricky part. If you think any Business entity operating a business would openly admit that they are out of business, or doing something not completely white...then my friend....you are not living in real world.
Dear Ankit, why are you trying to prove anything to the world yaar!
Let FERA and FEMA guys invite the traders over for a few nights and explain what they are doing.
I am sure that these FERA and FEMA guys will not use tricky words or ambiguous statements when they give them their hospitality.
A few such free holidays, and I am sure people will learn the truth quite fast
Quite frankly, I feel that this whole setup about ambiguity being allowed stinks. I think the authorities dont want clarity to emerge, so that they can target unsuspecting people lured by these online fx brokerages and take hefty amounts from them. I may be wrong, but I think these laws are non bailable.
Let FERA and FEMA guys invite the traders over for a few nights and explain what they are doing.
I am sure that these FERA and FEMA guys will not use tricky words or ambiguous statements when they give them their hospitality.
A few such free holidays, and I am sure people will learn the truth quite fast
Quite frankly, I feel that this whole setup about ambiguity being allowed stinks. I think the authorities dont want clarity to emerge, so that they can target unsuspecting people lured by these online fx brokerages and take hefty amounts from them. I may be wrong, but I think these laws are non bailable.
There are leading numbers of scams and issues with unregulated nonsense brokers and other forex managers and bots over the past few years.
The Reserve Bank Prioritizes in protecting India's Foreign Exchange Reserves. But due to the means of trade of Forex, Traders and Other Investors are losing money rapidly.
Let's accept this; I've seen the Forex Order Books, Most of the Orders are losses with the biggest and the smallest of volumes I've seen.
If you've already remitted the money out; You need not worry. But now you cannot do anything. Prove that you're winning. Show a big growth, perhaps a big account, then you can go ahead and negotiate with the RBI & If that doesn't happen and you've truck loads of cash in your forex ( profitable ) account, you can take up citizenship with countries like St Nevis & Kitts.
They've some economical citizenship policy; You donate $70,000 to their Govt. And they give you their citizenship. Plus thier citizenship allows Visa Free travel to the European Union and Some Selected other countries and you can stay in India with an OCI Card ( Overseas Citizenship of India).
That is how you can legally evade a lawsuit and tax nonsense as you're out of the Judicial Framework of India.
Again, This is an extreme step and can be considered only if you've made millions of Dollars in the Forex. Till then IBFX or Fxprimus debit cards are the best way to get in income.
The Reserve Bank Prioritizes in protecting India's Foreign Exchange Reserves. But due to the means of trade of Forex, Traders and Other Investors are losing money rapidly.
Let's accept this; I've seen the Forex Order Books, Most of the Orders are losses with the biggest and the smallest of volumes I've seen.
If you've already remitted the money out; You need not worry. But now you cannot do anything. Prove that you're winning. Show a big growth, perhaps a big account, then you can go ahead and negotiate with the RBI & If that doesn't happen and you've truck loads of cash in your forex ( profitable ) account, you can take up citizenship with countries like St Nevis & Kitts.
They've some economical citizenship policy; You donate $70,000 to their Govt. And they give you their citizenship. Plus thier citizenship allows Visa Free travel to the European Union and Some Selected other countries and you can stay in India with an OCI Card ( Overseas Citizenship of India).
That is how you can legally evade a lawsuit and tax nonsense as you're out of the Judicial Framework of India.
Again, This is an extreme step and can be considered only if you've made millions of Dollars in the Forex. Till then IBFX or Fxprimus debit cards are the best way to get in income.
now, why dont I do just that!
My man, You know; Because of this attitude you people make good critics, But never good winners. Learn to respect other's opinions.
This was on thing I'm soon going to do, thats why posted here.
And we're not robbing any bank we're skillfully trading the Forex. Highlight the word Skillfully.
And you're not liable to anything when you were a citizen of India, The Indian Law cannot hold you up for the things you've done when you 'were' a citizen of India.
This was on thing I'm soon going to do, thats why posted here.
And we're not robbing any bank we're skillfully trading the Forex. Highlight the word Skillfully.
And you're not liable to anything when you were a citizen of India, The Indian Law cannot hold you up for the things you've done when you 'were' a citizen of India.
Now, I think the citibank scam accused could just change his nationality, and the police will let him go, right?
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Say one earns $ 1000 every week for at least 5-6 weeks starting with a $1000-1500 account, which is easily possible in forex trading.
Are there any rules for inward remittance or i can just keep withdrawing the money as it comes?
Is there any upper cap as to how much i can receive in an year ?
I ask cos i can easily deploy $3-4k for forex trading, but i want to know the rules before hand.
Are there any rules for inward remittance or i can just keep withdrawing the money as it comes?
Is there any upper cap as to how much i can receive in an year ?
I ask cos i can easily deploy $3-4k for forex trading, but i want to know the rules before hand.
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