Attention! - Forex trading is illegal in India!

They are all fools of Axis Bank who lacks the knowledge. Go through several officers in a bank and all will give you different varying decisions. Then go to other bank and there also talk to several officers. I also did similar as you did and marked that 100% confidence was not found in anyone's answers. I have my own account in Axis Bank and challenged them in open to come out and debate on this matter. They were so much worried when I sent the complaint to their bank's corporate department and then they personally with Head of Bank too came to my house and begged in front of me to take back the complaint. I just don't talk like you, I believe in pratical results and evidence. So, I hereby confirm that forex trading is allowed if you have account in any country other then India. Because the jurisdiction of India cannot interfere niether the RBI can interfere with the matter which does not falls in their jurisdiction. As far as it concerns to having an online account with a broker in any country other then India, I am 100% percent sure that no one can stop any individual. RBI or you are not GOD who whatever says is final. Understood? So stop arguing and accept it. That's all !

This was about forex trading. Now let's talk of remittance which is different subject then forex trading subject. Remittance as per the Liberalized Remittance Scheme(LRS) is allowed. In LRS, there are several articles and sections under which you can remit money to foreign countries. Once you send money to foreign country then over there again the jurisdiction changes. After the remittance is once successfull , then RBI or Indian Law cannot interfere in the matter, as what ways and where is the money remitted from India was used. Once it's gone then whether you throw it anywhere or use at any place will only be applicable to the law of that particular jurisdiction and then niether Indian Constitution nor RBI is allowed to take any action in matters of foreign jurisdictions.

Here is an example of legal way of forex trading for Indian Citizens:

Open an online share trading or forex trading or currency trading account whose registered Regulatory office is based anywhere out side Indian Jurisdcition. Then open an International Personal Banking Account in the same country bank where you hold trading account and I would like to say that it is allowed as per the LRS scheme FAQ point number 36 mentioned on http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

Once you open a trading account AND also an international personal banking account in jurisdiction which falls outside India, then you can first of all send the money to you international personal banking account using the LRS scheme. And once it's remitted the powers of Indian jurisdiction is over. Then from that bank account simply transfer to your trading account which is also in the same country and does not falls in Indian Jurisdiction. This is the way and legal way to do forex trading using the LRS scheme and within legal limits.

Now tell me what would you like to say?

Sincerely



Kalpesh Sharma
World's Biggest Hacking Expert
Ahmedabad, Gujarat, India.
+91-79-25351208

But Forex as I realize is asking you to trade on super-fabulous margins....with the Forex brokers asking to deposit a small amount in INR and get maximum exposure through margin trades. No harm except most people in India including several traders do not play with such large amounts of margin....so it would be like asking them to jump in the Pacific Ocean without knowing how to swim the high seas Hence RBI holds this stand for saving gullible people in India.

But the people who know how to handle Forex well are already trading :thumb:

But the people who know how to handle Forex well are already trading :thumb:

Declaring it illegal in Indian territory is simply to discourage the Forex brokers(read monsters!) from taking away our foreign exchange reserves!

As far as I'm concerned, I can handle the Forex monsters...and as far as the Indian laws go, all they are asking is you cannot trade Forex with INR So I'll ask a friend to chip in....while I trade and then ask to transfer the profits to me minus the amount he/she chips in :thumb:

I stated RBI & Indian authorities do not want anyone in India to trade Forex by paying margin money in INR. Coz if you lose the trade, your INR paid upfront as margin money to the Forex broker is gone from our foreign exchange reserves in India. Hence the ban!

So for as "protecting" people goes, why allow people to eat what they want? You know, obesity behind innumerable health-issues so may be politicians & bureaucrats should DICTATE to the people what they can eat; yeah, because politicians & bureaucrats are supposed to the angels that "protect" everyone, right?

Seriously, you think government aka politicians & bureaucrats give a hoot about "protecting people"? NO, they merely do what seems palatable to their economically ignorant nobs, mostly they are just busy trying to rake in as much loot as they can!



Yes, & they have to hide from government for carrying on a perfectly legitimate activity of trading forex. You trade stocks, right, let's make that illegal too so that gullible people are "protected"!

Such "protective" attitude is what kept India miserable until 90s, after which many of the protective "regulations" on the economy were removed, foreign competition was allowed & the country was able to flourish; it was only because of such "protective" attitude that even until a few years back it was difficult to trade stock-futures, indexes-futures & even commodities!

A person should be free invest his/her money the way they want so long as they are not stealing, defrauding, coercing or killing someone, that's what FREEDOM is about, not being a slave of the ruling-class aka government!

Hi.

I talked about this to a fellow bank forex dealing desk friend. He said that the reason about "protecting people" is not correct. Otherwise the Liberalized Remittance Scheme(LRS) would not have existed for Indian citizens.

The reason is simple, the bureaucrats are afraid that once the economy is fully opened to the international markets. The first thing the western countries will do is devalue the rupee till it hits the bottom.

Even with the current protection they managed to devalue the rupee to almost Rs. 60. Imagine what will happens when its fully open. Rupee might not be worth even chana and singdana (peanuts). You can see what happened to Japanese Yen.

So the real reason is not "protection". Its just that the guys are scared sh**less.

Other countries can't devalue INR at will, value of ANYTHING is determined by supply & demand, it is NOT arbitrarily determined by anyone!

Just like when there's a reduced supply of onions, the buyers are willing to pay more which drives up its price & when there's a good harvest, sellers are trying to outsell one another which drives down the prices; same thing occurs with currencies too.
The more money (notes, coins, deposits) government issues & is expected to issue in the future, the more value it will lose & as I've said before, most governments that try to control their are one way or another trying to issue more devalue it, hoping to outmanoeuvre the market but idiots always get outmanoeuvred by the markets but of course, idiots never learn!

And the government can't control value of its currency, eventually markets take over, the only thing they can do is to stop issuing more money but obviously, they don't want do that because issuing monopolized-money is a profitable business as they get to STEAL people's purchasing-power without most people even realizing it, it's a de facto tax on all the holders of that currency!

INR can become a freely floating currency without too many issues so long as government is willing to curtail its supply, they will also have to manage deficits & debt more efficiently to infuse confidence about the strength of INR to assure the markets that government won't devalue it & then investors would want to invest if economy is deregulated enough, especially in the current scenario where many major currencies including USD, EUR are being devalued, a strong INR would be attractive to investors & push its value up, &drive growth & development in India, & Indians would be able to buy oil & other products cheaply from other countries, pushing up their living-standards.

Its not so easy to make INR a free-floating currency.....

We are not the darling of the world economy that they will have great demand for our INR

INR barely can manage to compete...of course corruption is a BIG issue behind that !

But given the current scenario...corruption et al....yet the solution definitely does NOT lie in opening up Forex trading for the lay persons in India.

I agree with you. The traders fail to see the macro economic effects of devaluation of the INR on common people.

Dollar with become ridiculously expensive. Imports and fuel price will shoot up and as a result inflation will also rise very high. Exports will result in producers sending good quality goods and food products out of the nation and selling left overs to residents. Not a good scenario .

And yes corruption does make a huge difference. No comments needed on that.

Can't let all of the above happen just because a handful of guys want to trade a derivative.