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.
- Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Documentation Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
Get Started >>
Answers by Our Lawyers
- Is online selling of adult toys legal in India
- Revocation of will by operation of law due to divorce
- Division of grandfather's agricultural land among legal heirs
- If builder refuse to pay amount for the flat back what to do
- Is Non compete agreement valid in India ?