NO.As Non resident Indians are allowed to participate in forex market,it should be understood that it is not about Indian citizens trading.It is all about erosion of INR to offshore(you sell an INR and buy $ for the purpose of speculative trading.)
Secondly,forex is a highly leveraged over-the-counter product with some brokers offering leverage upto 1:1000 ie you are controlling a position of 1000000 $ using your capital of just 1000$(unlike domestic stocks/forex futures where the maximum leverage is 1:5)So a small movement in price will result in huge losses/profits to the individual.Most of the time it is resulting in losses ,as a resident Indian has limited exposure to forex trading and forex is largely an unregulated online market having no physical premises nor nodal agencies to regulate unscruplous brokers,unlike stock market.
Had people been able to profit in forex,and brought in truck loads of cash ,the whole scenario would have been different.
As an NRI is a person,who brings inward foreign exchange from the country he has migrated for the purpose of work or business, RBI doesn't have an issues with him even if he routes a portion of it towards forex trade,coz he has already contributed to the 10 billion annual domestic foreign exchange pool through NRI remittances and other projects....
Secondly,forex is a highly leveraged over-the-counter product with some brokers offering leverage upto 1:1000 ie you are controlling a position of 1000000 $ using your capital of just 1000$(unlike domestic stocks/forex futures where the maximum leverage is 1:5)So a small movement in price will result in huge losses/profits to the individual.Most of the time it is resulting in losses ,as a resident Indian has limited exposure to forex trading and forex is largely an unregulated online market having no physical premises nor nodal agencies to regulate unscruplous brokers,unlike stock market.
Had people been able to profit in forex,and brought in truck loads of cash ,the whole scenario would have been different.
As an NRI is a person,who brings inward foreign exchange from the country he has migrated for the purpose of work or business, RBI doesn't have an issues with him even if he routes a portion of it towards forex trade,coz he has already contributed to the 10 billion annual domestic foreign exchange pool through NRI remittances and other projects....
