Can i trade in forex as an individual?
How can i trade in forex from India in global market legally as per FEMA Act it illegal to trade in forex individually but rules suggest trading can be done by incorporation and reporting profit in. Whether i need to form a company or i can open sole proprietary firm or by forming partnership firm?
The Reserve Bank of India has observed that overseas foreign exchange trading has been introduced on a number of Internet/electronic trading portals luring the residents with offers of guaranteed high returns based on such forex trading.
It clarifies that 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), besides being liable for violation of regulations relating to Know Your Customer (KYC) norms/Anti Money Laundering (AML) standards.
Remittances for such trades are not permitted under the law. Legal action can be taken against Indian residents collecting and remitting such payments.
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