individuals are not allowed to deposit money in overseas or domestic forex brokers!!? | All About Money Online

hi, this is the new rule given by reserve bank of india –

The Reserve Bank of India has today clarified that remittance in any form towards overseas foreign exchange trading through electronic/internet trading portals is not permitted under the Foreign Exchange Management Act (FEMA), 1999. The Reserve Bank has also clarified that the existing regulations under FEMA, 1999 do not permit residents to trade in foreign exchange in domestic / overseas markets.

Residents are, however, permitted to trade in currency futures and options contracts, traded on the stock exchanges recognised by the Securities and Exchange Board of India (SEBI) in India, subject to the conditions specified by the Reserve Bank from time to time.

Background

The Reserve Bank had noticed advertisements issued by electronic / internet portals offering trading or investing in foreign exchange with guaranteed high returns. Many companies even engage agents who personally contact gullible people to undertake forex trading/ investment schemes and entice them with promises of disproportionate / exorbitant returns.

The Reserve Bank of India cautions the public not to remit or deposit money for such unauthorised transactions. The advice has become necessary in the wake of many residents falling prey to such tempting offers and losing money heavily in the recent past.

now i was wondernig – Say one earns $ 1000 every week for at least 5-6 weeks starting with a $1000-1500 account, which is easily possible in forex trading. Are there any rules for inward remittance or i can just keep withdrawing the money as it comes? Is there any upper cap as to how much i can receive in an year ? I ask cos i can easily deploy $3-4k for forex trading, andi am not breaking the above rule because

Rest assured, RBI or any local legal body will not penalize me for bringing money into the country. It is only the outward remittance that is being frowned upon. ?? right? ????????? because only sending money outside is not allowed but can i withdraw as money comes?

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