Originally Posted by SNVFOREX
Hi This Is SNV,
I Tried To Invest In A FOREX Comapny Named Activtrades...but when i tried to deposit my money , then i came to know that Money transfer overseas for the reason for trading is banned and those transactions r said to be illegal.....hence it is a RBI rule all banks r following it.....So can u guys suggest a otherway to deposit my name to the company.....! waiting for ur reply ! Am From CHENNAI ,INDIA.
RBI REGULATIONS :
This topic has been discussed umpteen times here!
Foremost, let me clarify RBI stand in this regard.
What is Illegal :
To transfer foreign currency outside INDIA for purpose of Trading.
What is Legal :
Trading in any markets as long as it does NOT involve transfer of foreign exchange. Any foreign currency transfer that violates FEMA regulations can get you into civil case with the authorities (ie;Fines/Penalties).
Options available to Indian Traders :
Almost None. I'm not aware of any indian broker or International Broker who will allow you to trade Forex Spot/Futures with a account funded with Indian Currencies. The only option im aware of is to trade with instruments with INR pairs (USD-INR, etc).
How are Indian professional traders doing it : By having a proxy in foreign soil open a account for them offshore (or Indian account but funded by individual abroad). Some risk takers have funded such accounts using CreditCard or doing wire transfers (in small gradual amount). Such individuals have either a alternate source to route the profit back to India using illegal means or they simply are not wary of the powers of Income Tax dept.
In short, i would advise new traders to think deep before getting into Forex trading till the time RBI eases this limitations (im not too hopefull). Please understand that with Aadhar and PAN, RBI and IT Dept has track of all transactions that you do electronically or via bank.