Is Forex Trading in India legal from Alpari india ?

[Raj_sachdev]

Hi all,

Plz if some1 can help me in clarifying, if forex trading is legal in India from alpari . co . in. In the site its written :

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Alpari Forex (India) Pvt. Ltd.



Alpari Forex (India) Pvt. Ltd. was formed to promote Forex-trading capability to Indian retail and institutional customers. Individual Indian traders, fund managers and institutional customers will benefit from innovative and proprietary currency-trading technology combined with quality execution, competitive spreads, margins and expert and responsive customer support from our highly professional teams.

Alpari Forex (India) Pvt. Ltd. is a company formed under the Indian Companies Act, 1956. Alpari Forex (India) Pvt. Ltd will be conducting and offering marketing, sales, client services and compliance services in India on behalf of Alpari (UK). All accounts are opened directly with Alpari (UK), which is authorised and regulated by the Financial Services Authority in the UK.

Alpari Forex (India) Pvt. Ltd is responsible for new-client acquisition in India. Alpari Forex (India) Pvt. Ltd. will also be registering for membership of Indian currency exchanges including the National Stock Exchange (NSE) and the Multi Commodity Exchange (MCX) in order to offer Indian Forex products to its Indian clients.


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why has indian govt. given it the license to give forex trading facility if its illegal in India.

plz reply,

thx n regards
Raj

 

[trader.trends]

It is legal

Here is the RBI details on LRS. You cannot remit money for margin trading.

Here is the first paragraph

The remittance under the Scheme is available to the resident individuals for any permitted current or capital account transactions or a combination of both. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India. However, it was clarified that remittance from India for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.

details in the following link

http://www.rbi.org.in/scripts/FAQView.aspx?Id=66

 

[Raj_sachdev]

It is legal

Here is the RBI details on LRS. You cannot remit money for margin trading.

Here is the first paragraph

The remittance under the Scheme is available to the resident individuals for any permitted current or capital account transactions or a combination of both. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India. However, it was clarified that remittance from India for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.

details in the following link

http://www.rbi.org.in/scripts/FAQView.aspx?Id=66

thx trader.trends for prompt reply.

u said abv "However, it was clarified that remittance from India for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme." but alpari india is registered in india, so, its legal. right ?

Due to some prob I wud have to open the account on my father's name. So I want to be completely sure.

thx n regards
Raj

 

[trader.trends]

alpari india is registered in india, so, its legal. right ?


thx n regards
Raj

Alpari is regd in India but they will open an account for you in UK. As for legality is concerned there is no doubt. How you make the arrangements with them to trade is between you and them. They will be able to explain it better to you. You can invest in stocks, in US also through the same route. Contact IB or any other international broker for the same.

 

[Raj_sachdev]

thx trader.trends, wud clarify with them.

 

[Raj_sachdev]

i found these posts :

http://www.business-standard.com/india/news/alpari-launches-forex-trading-platform-in-india/64289/on

http://www.blonnet.com/2009/06/11/stories/2009061151690600.htm

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=62178106

nowhere its written that there is some legal problem in india regarding forex trading through alpari.

but if any1 has any other link on it....plz share

thx n regards
Raj

 

[Raj_sachdev]

some more links

http://archives.indiainfoline.com/news/showleader.asp?storyId=786&lmn=1&cat=1

http://forum.etoro.com/viewtopic.php?f=7&t=1271

the second link says reliance money has been providing forex trading from some time.

thx
Raj

 

[asok]

http://archives.indiainfoline.com/news/showleader.asp?storyId=786&lmn=1&cat=1

in this interview , Mr. Pramit Brahmbhatt, CEO, Alpari India, says as follows

"Currently, investors can trade through the LRS (Liberalized remittance scheme) of the RBI whereby an Indian Investor is permitted to remit / transfer USD $ 200,000 to trade in foreign markets be it equity, commodities or currency. However, he is not allowed to trade in betting products and take advantage of margin funding / trading offered by global companies. "

it means "Fores trading is not allowed".but it is surprise how they operate in india.

 

[trader.trends]

http://archives.indiainfoline.com/news/showleader.asp?storyId=786&lmn=1&cat=1

in this interview , Mr. Pramit Brahmbhatt, CEO, Alpari India, says as follows

"Currently, investors can trade through the LRS (Liberalized remittance scheme) of the RBI whereby an Indian Investor is permitted to remit / transfer USD $ 200,000 to trade in foreign markets – be it equity, commodities or currency. However, he is not allowed to trade in betting products and take advantage of margin funding / trading offered by global companies'
it means "Fores trading is not allowed".but it is surprise how they operate in india.

You are contradicting yourself. You cannot remit money if there is a margin call. Nothing prevents you from ensuring that there are no margin calls in your account if you know how.

 

[Raj_sachdev]

I have same doubts as Ashok, if u cant transfer money for margin funding / trading offered by global companies - how come alpari is operating like this with all this marketing and none of these big publication websites has ever mentioned its illegal. how can rbi and sebi give them licences.

the representative at alpari also told me that money shud be transfered thru LRS and there is no legal hassle thru that route.

this whole confusion is created by rbi and govt. were they on drugs when they were giving licences. so, i guess this license to alpari proves that its quite legal, and also its happening frm lot of months.

the more i read abt it more confusion grows as trader.trends like compatriots are also there, i was hoping to get help frm some1 who had been trading thru alpari frm india and had been able to withdraw his profits frm there, and has also paid taxes on them.

if any1 done that plz reply.

thx n regards
Raj