Individuals cannot trade in forex market: RBI

sumeetsj

Well-Known Member
#21
Sumeet,

Don't prioritize on deploying money, Prioritize on learning the ropes of the game. If you can trade the forex, you can trade any of its substitutent or correlated Financial Market.

Inward and outward remitting shouldn't be a concern if you know how to trade.

There are methods both legal and illegal to do that.

Dw, Best of luck :)
One thing i am sure of, if i set my mind to it, its not going to be tough for me to learn.
Mostly here i am concerned with my money, the money should be available to me in minimum possible time when i need it.
Last when i went to open a forex account banks like Bank of Baroda, ICICI Bank and SBI (here in bombay) were not able to give me correct guidance.
Hence i am taing time to rethink.
So much so that my info was even termed as b*llsh*t info by a respected, forex expert member of the forum. Posting the link,
http://www.traderji.com/forex/49792-remittance-profits-trading.html

Anyways point i want to make here is why would i like to resort to legal and/or illegal ways to get the money i have earned ?
There are a lot of equally rewarding opportunities in domestic markets too.
Well thats my personal view point though.
 

sumeetsj

Well-Known Member
#22
Thanks for your prompt reply harsh124,
i shall review stuff carefully before getting into forex if at all i plan to.
But i believe its not happening untill next 6 months at least from now
 
#23
One thing i am sure of, if i set my mind to it, its not going to be tough for me to learn.
Mostly here i am concerned with my money, the money should be available to me in minimum possible time when i need it.
Last when i went to open a forex account banks like Bank of Baroda, ICICI Bank and SBI (here in bombay) were not able to give me correct guidance.
Hence i am taing time to rethink.
So much so that my info was even termed as b*llsh*t info by a respected, forex expert member of the forum. Posting the link,
http://www.traderji.com/forex/49792-remittance-profits-trading.html

Anyways point i want to make here is why would i like to resort to legal and/or illegal ways to get the money i have earned ?
There are a lot of equally rewarding opportunities in domestic markets too.
Well thats my personal view point though.
Sumeet,
If you are looking at diversifying your trading markets and that too legally,then here is the method.
If you have a close friend or relative living abroad,provide trading expertise like Managing their trading accounts and ask them to shell out profits to you.
For this you can open Residence Foreign Currence Account(Domestic) and use the dollars for eminis of eur/usd.They are futures and have leverage of 125 and that isn't bad if one knows trading rules properly.You will be more relaxed and confident of the money in your trading account and also followed the laws of the land.
Profits from these trades are at your disposal for all the whims.So as long as it isn't a criminal act that you wnat to spend on,it is perfectly OK with the authorites.
 

ag_fx

Well-Known Member
#25
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.

Rest assured, RBI or any local legal body will not penalize you for bringing money into the country. It is only the outward remittance that is being frowned upon.

Even if you make a million out of a $1000 and remitt it all in one go, no one will stop you. You may have to answer ur IT guys though :thumb:
 

sumeetsj

Well-Known Member
#27
Rest assured, RBI or any local legal body will not penalize you for bringing money into the country. It is only the outward remittance that is being frowned upon.

Even if you make a million out of a $1000 and remitt it all in one go, no one will stop you. You may have to answer ur IT guys though :thumb:
Brother you are right. But remember that if you are earning as a citizen of India you have to pay the tax. Thats the law of the land.
So if you have earned you stand to pay tax, wherever/whichever source the earning be from.

And

It were those "BIG" inward remittances that prompted the businessmen to stash their money into swiss banks. If they show it as their income they are liable to pay tax to bring it to our country
 

ag_fx

Well-Known Member
#28
Brother you are right. But remember that if you are earning as a citizen of India you have to pay the tax. Thats the law of the land.
So if you have earned you stand to pay tax, wherever/whichever source the earning be from.

And

It were those "BIG" inward remittances that prompted the businessmen to stash their money into swiss banks. If they show it as their income they are liable to pay tax to bring it to our country
Thats exactly what I said. You have to answer your IT guys. And I did not mean Information Technology. ;)

IT=Income Tax :)

Besides, IT is something that you will have to pay if you make money in trading. After all, all the monetary transactions take place via bank accounts. The point here was of inward remittances and I only wanted to state that there would be no limitations on incoming remittances(unlike outward remittances).
 
P

preetksgill

Guest
#29
Clarification Points:
  • RBI Circular came in the light of many Indian traders who were loosing money in scam brokers from russia and africa.
  • The RBI regulation protects the resident Indians from opening accounts with scam brokers based on Internet advertisements.
  • Good brokers which operate under the perview of the Non Banking Financial Corporation License or NBFC are permitted to operate under the RBI regulation.
  • You can withdraw money through normal bank wire, if you are making profits but cannot remit money to non NBFC brokers.
  • Profits from forex is taxable, I prefer to tax them as business income, this way I am able to add all expenses of rent, electricity, phone bills and all other stuff to reduce tax liability.
  • FERA or FEMA applies only if you are remitting money outside India, it does not apply to net banking inside India.
  • Paypal and credit card option are no longer valid under the current RBI regulation and hence should be avoided entirely.
  • will add more later.
 

ag_fx

Well-Known Member
#30
Clarification Points:
  • RBI Circular came in the light of many Indian traders who were loosing money in scam brokers from russia and africa.
  • The RBI regulation protects the resident Indians from opening accounts with scam brokers based on Internet advertisements.
  • Good brokers which operate under the perview of the Non Banking Financial Corporation License or NBFC are permitted to operate under the RBI regulation.
  • You can withdraw money through normal bank wire, if you are making profits but cannot remit money to non NBFC brokers.
  • Profits from forex is taxable, I prefer to tax them as business income, this way I am able to add all expenses of rent, electricity, phone bills and all other stuff to reduce tax liability.
  • FERA or FEMA applies only if you are remitting money outside India, it does not apply to net banking inside India.
  • Paypal and credit card option are no longer valid under the current RBI regulation and hence should be avoided entirely.
  • will add more later.


Would you like to add a source of these so called "CLARIFICATIONS" ??? Are they from RBI?? If not, then they are just OPINIONS.

Btw...I can smell FXCENTRAL already....:cool:
 

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