Unfortunate news for Indian forex traders.

#1
Dear traders,
I came across some unfortunate news for myself & fellow forex traders.
I just read the updated version of Liberalised Remittance Scheme from RBI website. Its clearly mentioned that forex trading is not permitted.
http://www.rbi.org.in/scripts/FAQView.aspx?Id=66
See Part A-Q.3- point iv)
Its clearly mentioned that "Remittance for trading in foreign exchange abroad"
is prohibited.


Guys this is very much frustrating for me. Not sure whats the fate of firms like Alpari, Fxcentral etc.
Your valuable inputs needed.
Thnx.
 

SavantGarde

Well-Known Member
#2
There is nothing new about that it has always existed....to bypass all one has to use is some contact to fund it & payoff the person...here...nothing illegal about it...

As far as FXCMs that have opened offices here....are smart guys....if you fund your account here.....which is different from sending money abroad....

Old News....My Friend...


SavantGarde

Dear traders,
I came across some unfortunate news for myself & fellow forex traders.
I just read the updated version of Liberalised Remittance Scheme from RBI website. Its clearly mentioned that forex trading is not permitted.
http://www.rbi.org.in/scripts/FAQView.aspx?Id=66
See Part A-Q.3- point iv)
Its clearly mentioned that "Remittance for trading in foreign exchange abroad"
is prohibited.


Guys this is very much frustrating for me. Not sure whats the fate of firms like Alpari, Fxcentral etc.
Your valuable inputs needed.
Thnx.
 
#3
There is nothing new about that it has always existed....to bypass all one has to use is some contact to fund it & payoff the person...here...nothing illegal about it...

As far as FXCMs that have opened offices here....are smart guys....if you fund your account here.....which is different from sending money abroad....

Old News....My Friend...


SavantGarde
Which of the FXCMs that have opened offices here have local funding option?
As far as i know when we open account with Alpari, we still have to send money abroad by wire tranfer.
 
#5
There is nothing new about that it has always existed....to bypass all one has to use is some contact to fund it & payoff the person...here...nothing illegal about it...

As far as FXCMs that have opened offices here....are smart guys....if you fund your account here.....which is different from sending money abroad....

Old News....My Friend...


SavantGarde
let me clarify savant this specification never existed before as you can see its been published on 17th sept where remittance for trading abroad is strictly prohibited. Before people used to send money abroad until capital or equity investment. Now RBI has clarified no remitance of funds for trading fx abroad .

Q. 3. What are the prohibited items under the Scheme?

Ans. The remittance facility under the Scheme is not available for the following:

i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;

ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;

iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;

iv) Remittance for trading in foreign exchange abroad;

So they have made t officially illegal to trade outside.
 

SavantGarde

Well-Known Member
#6
I suggest you read the previous policy where it is clearly mentioned 'Remittances From India For Margin Trading & Margin Are Not Allowed' When you examine the policy statement it would include FX.

Now, let me clarify a few things

a) Remittances From India Does Not Mean if you have earnings or somebody gives you foreign exchange that can't be used for funding

b) It does not state that Indians cannot trade FX

In short it means there can't be outflow of foreign exchange for FX trading or Margin call from India

Suggest you check the eaqrlier policy of RBI & the link is somewhere in the FX Forum....here in another thread


SavantGarde
let me clarify savant this specification never existed before as you can see its been published on 17th sept where remittance for trading abroad is strictly prohibited. Before people used to send money abroad until capital or equity investment. Now RBI has clarified no remitance of funds for trading fx abroad .

Q. 3. What are the prohibited items under the Scheme?

Ans. The remittance facility under the Scheme is not available for the following:

i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;

ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;

iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;

iv) Remittance for trading in foreign exchange abroad;

So they have made t officially illegal to trade outside.
 
#7
let me clarify savant this specification never existed before as you can see its been published on 17th sept where remittance for trading abroad is strictly prohibited. Before people used to send money abroad until capital or equity investment. Now RBI has clarified no remitance of funds for trading fx abroad .

Q. 3. What are the prohibited items under the Scheme?

Ans. The remittance facility under the Scheme is not available for the following:

i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;

ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;

iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;

iv) Remittance for trading in foreign exchange abroad;

So they have made t officially illegal to trade outside.
Thats what i was sayin. Until now there was no clear mention of it. But in the latest update they have clearly mentioned that sending money abroad for Fx trading is not permitted.
 
#9
I suggest you read the previous policy where it is clearly mentioned 'Remittances From India For Margin Trading & Margin Are Not Allowed' When you examine the policy statement it would include FX.

Now, let me clarify a few things

a) Remittances From India Does Not Mean if you have earnings or somebody gives you foreign exchange that can't be used for funding

b) It does not state that Indians cannot trade FX

In short it means there can't be outflow of foreign exchange for FX trading or Margin call from India

Suggest you check the eaqrlier policy of RBI & the link is somewhere in the FX Forum....here in another thread


SavantGarde
savantji, are you a resident Indian who trades overseas forex markets? just curious.
 

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?