DevTrader
Private, 1st Class
- Messages
- 56
This thread contains two different issues.
1. Overseas forex trading through electronic / internet trading portals is banned in INDIA by RESERVE BANK OF INDIA (RBI)
2. Public petition filed against Online Forex Brokers - HotForex - for banned of its operation in INDIA.
ISSUE 1:
All my INDIAN traders if you are still not aware of RESERVE BANK OF INDIA (RBI) circular RBI/2011-12/262 A.P (DIR Series) Circular No.46 dated 17-11-2011View attachment RBI APDR461711F.pdf. Then please read it here and understand it.
RBI has banned overseas forex trading through electronic / internet trading portals under Foreign Exchange Management Act (FEMA), 1999 .Private bank already started to trace such transaction using credit card / banks with the help of card Issuer Company. This circular clearly warned all Indian citizen “any person resident in India collecting and effecting / remitting such payments directly /indirectly outside India would make himself/ herself liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards.”
It is in your own behalf that you should close Overseas trading or else sooner /later you will receive SHOW CAUSE notice from your bank and you have to mention the purpose of such transaction and have to pay penalty under FEMA, 1999. It makes no sense to trade in overseas forex because
1. You don’t have any control on your fund after deposit as none of those traders have their offices in INDIA (if somebody claims that they have office in INDIA and they are alert because Government of INDIA has never give permission to open any premise in INDIA.”
2. You have to pay too much money as charges/commission/penalty. In first stage you have to accept loss as currency difference (you have card in INR and you are paying USD).then your broker might charge commission .Indian Income tax department send you notice under FEMA,1999.so in case you make profit(98 %trader don’t make profit.) then be ready to share it with other party too.
It is better to trade in our recognized stock exchange which is approved by SECURITES AND EXCHANGE OF INDIA (SEBI) because it s more cost effective and most important they are approved my SEBI.
I have just tried to spread alert words too all my INDIAN traders. There is no scene to do this illegal activity.
ISSUE 2:
Active member in this thread is well aware about my issue with Online Forex Brokers - HotForex -.
I already stopped working in overseas forex from last 4 months .I already filled a public petition in Indian court to block such broker to operate in INDIA. I know list of overseas broker is endless but I have only major problem with Online Forex Brokers - HotForex - .I asked for blockage of such website in the court. This matter is under the law and will soon update you on the verdict.
If anyone want to update HOTFOREX representative about this .they are welcome to do that as to inform the party under public petition law is not mandatory
PS: Main reason to post a thread after long time because I got a show cause notice from my bank and from last 20 days I work out to solve this matter and finally I got solve with 40% penalty on remittance under FEMA 1999.it’s again my request to stop this trading practice as at the end of the day you will not get nothing. Just imagine 40% penalty!!!!!!!! It’s higher than income tax highest slab.
You are welcome to contact me on devangsurti@hotmail.com for any clarification/information
1. Overseas forex trading through electronic / internet trading portals is banned in INDIA by RESERVE BANK OF INDIA (RBI)
2. Public petition filed against Online Forex Brokers - HotForex - for banned of its operation in INDIA.
ISSUE 1:
All my INDIAN traders if you are still not aware of RESERVE BANK OF INDIA (RBI) circular RBI/2011-12/262 A.P (DIR Series) Circular No.46 dated 17-11-2011View attachment RBI APDR461711F.pdf. Then please read it here and understand it.
RBI has banned overseas forex trading through electronic / internet trading portals under Foreign Exchange Management Act (FEMA), 1999 .Private bank already started to trace such transaction using credit card / banks with the help of card Issuer Company. This circular clearly warned all Indian citizen “any person resident in India collecting and effecting / remitting such payments directly /indirectly outside India would make himself/ herself liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards.”
It is in your own behalf that you should close Overseas trading or else sooner /later you will receive SHOW CAUSE notice from your bank and you have to mention the purpose of such transaction and have to pay penalty under FEMA, 1999. It makes no sense to trade in overseas forex because
1. You don’t have any control on your fund after deposit as none of those traders have their offices in INDIA (if somebody claims that they have office in INDIA and they are alert because Government of INDIA has never give permission to open any premise in INDIA.”
2. You have to pay too much money as charges/commission/penalty. In first stage you have to accept loss as currency difference (you have card in INR and you are paying USD).then your broker might charge commission .Indian Income tax department send you notice under FEMA,1999.so in case you make profit(98 %trader don’t make profit.) then be ready to share it with other party too.
It is better to trade in our recognized stock exchange which is approved by SECURITES AND EXCHANGE OF INDIA (SEBI) because it s more cost effective and most important they are approved my SEBI.
I have just tried to spread alert words too all my INDIAN traders. There is no scene to do this illegal activity.
ISSUE 2:
Active member in this thread is well aware about my issue with Online Forex Brokers - HotForex -.
I already stopped working in overseas forex from last 4 months .I already filled a public petition in Indian court to block such broker to operate in INDIA. I know list of overseas broker is endless but I have only major problem with Online Forex Brokers - HotForex - .I asked for blockage of such website in the court. This matter is under the law and will soon update you on the verdict.
If anyone want to update HOTFOREX representative about this .they are welcome to do that as to inform the party under public petition law is not mandatory
PS: Main reason to post a thread after long time because I got a show cause notice from my bank and from last 20 days I work out to solve this matter and finally I got solve with 40% penalty on remittance under FEMA 1999.it’s again my request to stop this trading practice as at the end of the day you will not get nothing. Just imagine 40% penalty!!!!!!!! It’s higher than income tax highest slab.
You are welcome to contact me on devangsurti@hotmail.com for any clarification/information
