Individuals are not allowed to deposit money in overseas or domestic forex brokers!!?

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?|||Sounds like they are saying you can't trade the Forex if you live in India.. period. Sounds like all they are allowing is for you to trade the Futures and Options versions of the market. I think there is a such thing as "futures" for currency? Anyway, but the way I read this, it basically says that Forex trading is not allowed in India. If that's true, then that's pretty sad.|||I think this site right here might help you out.


http://www.ozforex.com.au/|||If you have fully explained the rules (and fully studied "the Foreign Exchange Management Act (FEMA), 1999") then your concept of bringing money back into the country sounds valid.





Your only problem, then, is how do you get your "$3-4k for forex trading" into a brokerage account so you can get started? The ban on electronic transfer means you can't do it by a bank transfer, or a credit card, so it sounds like you would have to travel outside India to open an account.





On the other hand, you could open an account with the Ireland-based AVA-FX (see details on the web site below) which also includes Oil, Stock Indices (DJ, S%26amp;P500, FTSE, DAX, CAC, MIB, NIKKEI and others), Gold, Silver, Sugar, Cotton, Gas and all the other major commodities along with its comprehensive Forex platform, then you could claim you were transferring money for general trading rather than Forex. :-)





They also provide an "AVA Debit Mastercard" you could use to spend your earnings without transferring money back and forth. Maybe these features will help you skirt the rules . . .