Individuals cannot trade in forex market: RBI

[preetksgill]

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....

these are my views expressed as clarification of the whole circular.

if forex trading was illegal for resident Indians then State Bank of India would never have started USDINR options, or SEBI would never have permitted this.

Harping on legality without seeing the background in which such regulations are made is bad.

 

[ag_fx]

these are my views expressed as clarification of the whole circular.

if forex trading was illegal for resident Indians then State Bank of India would never have started USDINR options, or SEBI would never have permitted this.

Harping on legality without seeing the background in which such regulations are made is bad.

There is a lot of difference between Forex OTC and Forex Futures and Options.

It is stupid to compare the two arenas. While RBI clearly has had its inhibitions about the OTC market, they clearly promote CURRENCY futures and options trading on NSE/MCX.

Your comparison itself has no BACKGROUND....no wonder, it cant be BAD.

 

[cooldudeRE]

There is a lot of difference between Forex OTC and Forex Futures and Options.

It is stupid to compare the two arenas. While RBI clearly has had its inhibitions about the OTC market, they clearly promote CURRENCY futures and options trading on NSE/MCX.

Your comparison itself has no BACKGROUND....no wonder, it cant be BAD.

I agree Ankit. Its ridiculous to compare Otc fx & forex F&O. There are many who try to create confusion in minds of newbies statin about fx futures.

If you check Alapri India's new website, you will see that they are only promoting currency futures & options. No mention of OTC in their faq's also. For Otc they just give link to their UK site.

Trading timings on currency futures should be increased til 11pm just like mcx going forward. That wil make it more lucrative to trade cause we wil get to catch US opening moves.

 

[aryabhatta]

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....

of course it is fccentral ......... i think below you will find all the clarification you need, I dont know why u even continue this discussion :lol:

His opinion is of no value just like his real time trading record (real time monitoring not faked historical statements) :rofl:

Well i won't post anymore those who want to believe him rather than the RBI official press release are more than welcome to.

 

[Mr.Rao]

ूेस ूकाशनी PRESS RELEASE
सं
चार ǒवभाग, कɅ
िȣय काया[
लय, एस.बी.एस.माग[
, मुं
बई-400001
________________________________________________________________________________________________________
DEPARTMENT OF COMMUNICATION, Central Office B.S.Marg, Mumbai-400001 , S.
फोन/Phone: 91 22 2266 0502 फै
स/Fax: 91 22 2266 0358

भारतीय ǐरज़व[
बᱹक
RESERVE BANK OF INDIA
वे
बसाइट : www.rbi.org.in/hindi
Website : www.rbi.org.in
इ-मेल email: [email protected]
February 21, 2011

RBI Advisory on Overseas Forex Trading through
Electronic / Internet Trading Portals

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. The
Reserve Bank has also clarified that the existing regulations under FEMA, 1999 do
not permit residents to trade in foreign exchange in domestic / overseas markets.

Residents are, however, permitted to trade in currency futures and options
contracts, traded on the stock exchanges recognised by the Securities and
Exchange Board of India (SEBI) in India, subject to the conditions specified by the
Reserve Bank from time to time.

Background

The Reserve Bank had noticed advertisements issued by electronic / internet
portals offering trading or investing in foreign exchange with guaranteed high returns.
Many companies even engage agents who personally contact gullible people to
undertake forex trading/ investment schemes and entice them with promises of
disproportionate / exorbitant returns.

The Reserve Bank of India cautions the public not to remit or deposit money
for such unauthorised transactions. The advice has become necessary in the wake
of many residents falling prey to such tempting offers and losing money heavily in
the recent past.


Alpana Killawala
Press Release : 2010-2011/1196 Chief General Manager

 

[sattimes]

I agree Ankit. Its ridiculous to compare Otc fx & forex F&O. There are many who try to create confusion in minds of newbies statin about fx futures.

If you check Alapri India's new website, you will see that they are only promoting currency futures & options. No mention of OTC in their faq's also. For Otc they just give link to their UK site.

Trading timings on currency futures should be increased til 11pm just like mcx going forward. That wil make it more lucrative to trade cause we wil get to catch US opening moves.

i am also wondering. if this act was formulated in 1999, then how come ALpari was even allowed to launch INdia operation?


The currency futures are started only recently by them, before they were offerring spot trading only.

Only info they used to give out is to use leverage at your own risk ( as it is considered as margin trading) and no issues with 1:1 .

 

[MOka]

It is better to stick to exchanged traded FX as compared to OTC
FX futures in India and overseas
FX ETFs in USA

Although there are supposedly reputed FX brokers in jurisdictions like USA/ US and Australia/ Germany etc OTC market does not offer the same level of protection and can have following issues
- Transparency
- Counter party risk management
- Client fund safety
The only disadvantage of Exchange traded FX products is low leverage

 

[laluji]

Trading forex & Being Gay

Looks like trading Forex in India is similar to being a Gay in India....

Officially both are banned but many do it, and nobody is penalized.

As India is opening up on the Gay front, slowly it will open up on the otc forex trading too...

 

[krishere]

Re: Trading forex & Being Gay

Looks like trading Forex in India is similar to being a Gay in India....

Officially both are banned but many do it, and nobody is penalized.

As India is opening up on the Gay front, slowly it will open up on the otc forex trading too...

waah laluji.... kya out-of-the-blue relationship nikala hai......

 

[amanfree]

http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=23941

This should help. Its not from some blog.

it clearly states:

"Residents are, however, permitted to trade in currency futures and options contracts, traded on the stock exchanges recognised by the Securities and Exchange Board of India (SEBI) in India, subject to the conditions specified by the Reserve Bank from time to time."

So there is no prob i suppose