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Is FOREX Banned In India ?

Discussion in 'General Forex Talk' started by pearlone, Jul 12, 2011.

  1. pearlone

    pearlone Recruit

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    Hi This Is Pearl one,

    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 :​


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  2. Pharaoh

    Pharaoh Colonel

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    Wow. That's a new one. The logic sounds more like it's directed towards HYIPS and forex account management fraud.

    I'd suggest contacting some of the larger brokers in several different countries and see what they have to say.
     
  3. Aditya Mhaiskar

    Aditya Mhaiskar LiteForex Associate

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    Hello All Indian Forex Traders

    Hello,
    I am Aditya Mhaiskar,

    I am from LiteForex Russia, Kaliningrad. we are expanding in to Indian Market and looking for good traders and partners who could partner with us.

    About the Deposits, yes you cannot directly transfer your money abroad through banks, but you can use third party payment systems like Liq Pay, LR, Alert pay etc.. to deposit your money with LiteForex.

    I wish you all the best with whatever you are doing

    Cheers

    Aditya.
     
  4. Pharaoh

    Pharaoh Colonel

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    Why wasn't this posted by one of LiteForex's official reps?
     
  5. MAestr0

    MAestr0 Recruit

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    Indian transfers

    Looks like the government is keeping the money in India and supporting the local businesses.
     
  6. dkami

    dkami Sergeant

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    Sorry but I dont know anything about forex in India

    But there is a few threads going about Liteforex in the scam alert folder here on FPA I suggest you read them before considering opening an account with Liteforex;)

    All the best
     
  7. bigbear8481

    bigbear8481 Recruit

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    [/QUOTE]

    Hello pearlone,

    I am not sure if I can post links yet, but I got this off the reserve bank of india website:

    "In order to trade in Forex one has to convert currency first because there are no interesting pairs with rupees (in fact, there are pairs with rupees appearing now but they are not going to be very popular among Forex traders due to a number of factors), but in India there is no free conversion of the national currency! Luckily, RBI has been softening foreign exchange rules in recent years and now every Indian is allowed to exchange rupees for up to 200,000 USD per year without giving any justification. So one can say - voila, any Indian can trade in Forex for this amount now.

    But RBI guidelines say that Indian citizens cannot use this 200,000 allowance for margin calls. What is a margin call? Margin call is the amount you put on your balance at the Forex broker! So basically, you cannot transfer money for Forex trading, even though you can make transfers in general.

    So what are the options? Semi-legal option is to specify other reason of transfer - instead of margin call, you call it "investment in futures" or whatever. I call it semi-legal because you're going to lie, but on another side - it's not going to be possible, at least not that easy, to verify.

    Another, absolutely legal option is to ask a friend of yours who is either a NRI or a foreigner to transfer money for you, because they don't have these limitations.

    There is also a "grey" option - to use online currencies like e-gold. They are not regulated by any government, legally speaking - they don't exist. So you can use them without breaking any laws, but your government is not going to help you in case of problems with broker - you simply won't be able to prove that you had any money on account."

    Hope that helps.

    :cool: - Bear
     

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