Book your seats

Book your seats

RBI Rules For Forex Trading In India

RBI Rules For Forex Trading In India Is Legal Or Not

Legal accessibility of Forex Trading is one of the most argumentative topics in India. RBI has maintained certain rules and regulations regarding forex trading. Investors must abide by the rules as the main objective behind these rules is to protect our people and country from loss. Before step into the main subject, according to RBI whether forex trading in India is legal or not, a basic background history regarding forex trading is essential. Therefore, let’s start with what the forex trading is and where did it come from.

Forex Trading In India Is Legal Or Not?

Trade-in Forex market is done on the margin trading principles that means you can trade with a relatively smaller deposit for a bigger amount. In order to save foreign reserve and save country people from loss, RBI restricted forex trading. Previously, LRS (Liberalised Remittance Scheme) was 2 lac but now RBI restricts it with 70-75k. Without abide by these restrictions, trade-in Forex considers as illegal. Though, there are legal ways by which you can be attached with FX.

Legal route of doing Forex trade is to choose a SEBI registered dealer. You can do trade there with the help of a registered dealer. Authorized dealer list is available on SEBI website. Investors should beware of fake dealers in the FX. It is advisable to abide by RBI rules and regulation of Forex trade. If you want to know detail rules by RBI, can check the PDF file I have attached here.

Is Forex Trading In India Legal?

It is a settled fact that no Indian citizen, as guided by SEBI and regulated by RBI in order to minimize risk incumbent in it, can undertake forex trading inside the Indian Territory through any electronic or online forex trading platform under any circumstances. By virtue of RBIs circular issued in 2013, forex trading through electronic or internet trading portals has been prohibited. However, forex trading is held legal when one does it through specified foreign exchange trading platforms and the base currency is INR (Indian Rupees). Simply put, the Indian Government has limited trading for Indian residents to only trade currency pairs which are bench-marked against INR (Indian Rupee).

As an Indian resident, as long as you are trading through any specified Indian Brokerage allowing access to Exchanges based in India such as the NSE, BSE, MCX-SX, and also provides access to currency derivatives, the transactions made for the trade is held entirely legal. Earlier, the only tradable instruments were EURINR, GBPINR, JPYINR, and USDINR. However, the Reserve Bank of India further, from 10th December 2015 onwards, allowed exchanges to offer cross-currency futures contracts and exchange-traded currency options in three more currency pairs namely, EUR-USD, GBP-USD, and USD-JPY

Strategies for Forex Trading in India

  • It is advisable to consult a lawyer first to know the procedure well.

  • SEBI imposes restrictions on the maximum availability of leverage, types of trading, and the rules governing exotic currency pairs, etc.

  • As a Forex trader in India, investors have to invest their money with Government approved SEBI Forex brokers.

  • In India, a majority of Forex brokers only allow its traders to trade on INR related currency pairs.

  • Without the Indian authorities’ approval, Trading with an international broker and depositing money from an Indian account to an overseas bank account is strictly against the Indian law.

How To Start Forex Trading In India?

As I have mentioned earlier that when forex trading was introduced in India, there were only foreign brokers like FXCM, ALPARI, GCI, AVA, OANDA, etc. After restriction from the Reserve Bank of India, investors can trade in Forex but only through Indian SEBI registered broker. Now, at present all you need to trade in forex is to have a Demat account. Forex is legally allowed within Indian Exchanges, BSE, NSE, MCX-SX (Multi commodity exchange). Indian resident including banks, financial institutions, can do Forex trade in various currency pairs like EURUSD, GBPUSD, JPYUSD, USDINR, EURINR, GBPINR, etc.

Points to Remember for Successful Forex Trading

  • Forex trading is similar to equity trading, the only difference is in equity trading, share value matters while in the forex trading exchange rate matters.

  • Investors must have sufficient knowledge and enough experience regarding market and price action prior to forex trade.

  • Forex market remains open all over 24 hours 5 days a week but in India market close at 5 pm. Hence, it is advisable to choose intraday rather than position.

  • Be aware of the scams in the forex market.

  • NRIs are not bound to follow any rules of RBI regarding the forex trade, they can choose foreign brokers also and trade. The RBI rules of SEBI registered broker is only for Indian resident.

Why RBI not allowed Overseas forex trading?

RBI had noticed that advertisement 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 & entice them with promises of disproportionate/exorbitant returns.
The Reserve Bank of India cautions the public not to remit or deposit money for such unauthorized transactions. The advice has become necessary in the wake of many residents falling prey to such tempting offers & losing money heavily in the recent past.

Still Many Indian Trading in Overseas forex trading through electronic / internet trading portals.

Yes, It is right still so many Indian peoples trading in overseas forex trading But actually they are in doing illegal activities. Nowadays RBI is very strict on this issue.

Does NRI Allow to Trade in forex?

Yes, There is no restriction for NRI to trade in forex

Conclusion

However, Forex is the largest market in the world and there is no doubt about it but you should be cautious about choosing your step for trading in Forex. I hope you will be benefited by the article Forex Trading In India Is Legal Or Not.

Disclaimer

International Forex trading ( SPOT FX ) in India is an illegal commercial practice and not regulated by RBI, thus we do not practice it. We are an online coaching platform targeting only foreign clients. However, we are open to Indian clients for Domestic Forex Trading coaching and also for NRI's who may wish to train with us thus we strongly distance ourselves from any legal liability that may arise from their activities of Forex trading within India and they may only do so at their own risk. We are not a trading company nor a fund management company. Our key areas of operations are training International Forex Trading, Domestic Forex Trading, MCX Commodities, Stocks. We are not Forex brokers nor do we carry any form of portfolio management services. Thus, clients must only hold us liable only to as far as training and content delivery is concerned. Kindly check RBI Rules For Forex Trading In India Is Legal Or Not which is clearly mentioned in our portal before you join the course.

banner
forex trading course in chennai, best forex trading training in chennai, forex trading training course in chennai, forex trading training class chennai tamil nadu, forex trading courses in chennai, forex training in chennai, currency trading training in chennai, fx spot trading training centre chennai tamil nadu, trading training in chennai, trading training chennai, forex course in chennai, forex trading training in chennai, forex trading training institute, forex trading training pdf, forex trading training in india, forex trading training app, forex trading training in hyderabad, forex tradi, ng , aining in bangalore, forex trading training bangalore, forex trading basic training, forex trading training class chennai tamil nadu, forex trading training course, forex trading train, forex trading training, forex trading training in erode, forex trading classes in erode, forex trading training for beginners, forex trading training free. forex trading training for beginners pdf, forex trading lessons for beginners, forex trading courses free, forex trading training india, forex trading training india, forex trading training hyderabad, forex trade training hyderabad telangana, forex trading training in hindi, forex trading training in coimbatore, forex trading training in madurai, forex trading training in tamil, training trading forex jakarta, forex trading training - kenya, forex trading training in kerala, forex trading training in kolkata, forex trading courses in kenya, forex trading training in chennai, forex trading training institute, forex trading training pdf, forex trading training in india, forex trading training in hyderabad, forex trading training in bangalore, forex trading training software, forex trading training australia, forex trading training account, forex trading school africa, forex trading classes atlanta, forex trading training bangalore, forex trading basic training, forex trading training class chennai tamil nadu, forex trading training course, forex trading, training courses uk, forex trading training canada, forex trading training course malaysia, forex trading training dubai, forex trading training durban, forex trading courses dublin,forex trading courses dubai, forex trading classes dubai, forex trading school dubai, forex trading school denver, forex trading training education, forex trading training in erode, forex trading, classes in east london, forex trading classes in erode, forex trading training for beginners, forex trading training free, forex trading training for beginners pdf, forex trading training free download, forex trading courses for beginners, forex trading courses free, forex trading training india, forex trading training hyderabad, forex trade training hyderabad telangana, forex trading lessons for beginners, forex trading lessons for beginners pdf, forex trading training in hindi, forex trading training in coimbatore, forex trading training in madurai, forex trading training in tamil, forex trading training in coimbatore, forex trading training in madurai, forex trading training in tamil, learn forex trading in tamil, forex trading in tamil, where to learn forex trading in tamil nadu, how to learn forex trading in tamil, forex trading in tamil pdf, forex trading in tamil nadu, forex trading meaning in tamil, forex trading books in tamil, forex trading brokers in tamilnadu, forex trading training in tamil, about forex trading in tamil, how to do forex trading in tamil, forex trading for beginners in tamil, learn forex trading in tamil, forex trading guide in tamil, how to learn forex trading in tamil, forex trading in india tamil.forex trading training in chennai, forex training classes in chennai, forex training in chennai, forex trading course in chennai, forex trading training class chennai tamil nadu, forex traders in chennai, forex trading in chennai, forex classes in chennai, forex trading classes in chennai, forex trader chennai, forex trading in chennai courses, forex trading jobs in chennai, forex trading company in chennai, learn forex trading in chennai, best forex trading in chennai, chennai forex trading, forex trading classes in chennai, forex traders in chennai, forex trading training in chennai, forex trading course in chennai, forex trading in chennai, forex trader in chennai, forex trading training class chennai tamil nadu, forex in chennai, forex trading tamil books, forex trading tamil pdf, forex trading tamil nadu, forex trading tamil videos, forex trading in tamil youtube, forex trading in tamil free, learn forex trading tamil, about forex trading in tamil, forex trading for beginners tamil, forex trading training class chennai tamil nadu, forex trading course in tamil, forex trading details in tamil, forex trading tutorial in tamil pdf, forex trading guide in tamil, forex trading in tamil, forex trading in tamil pdf, forex trading in tamil nadu, forex trading books in tamil, forex trading training in tamil, forex trading meaning in tamil, forex trading strategies in tamil, what is forex trading tamil, forex trading tutorial tamil, where to learn forex trading in tamil nadu, how to learn forex trading in tamil, forex classes in chennai, forex course in chennai, forex trading course in chennai, forex training classes in chennai, forex trading training in chennai, forex training in chennai, forex trading classes in chennai, forex trading courses in chennai.forex trading course in chennai, forex trading course in india, forex trading course in tamil, forex trading courses near me, forex trading course in hindi, forex trading course online, forex trading course free, forex trading course beginners, forex trading course best, forex trading course for beginners pdf, forex trading course in hyderabad, forex trading course training in hyderabad, forex trading course in delhi, forex trading course in mumbai, forex trading training course, trade and forex courses, best forex trading video course, best forex trading course in the world, forex trading in india, forex trading legal in india, forex trading strategies, forex trading for beginners, forex trading business, forex trading books in hindi, forex trading benefits, forex trading basics, forex trading course, forex trading course in india, forex trading education, forex trading experts, forex trading from india, forex trading for beginners in hindi, forex trading for beginners in india, forex trading free course, forex trading meaning, forex trading is legal in india, forex trading kya hai in hindi,, forex trading market, forex trading minimum deposit, forex trading master, forex trading online course, forex trading rules and regulations in india, forex trading rules in india, is forex trading profitable in india, forex trading courses
Web Hits