RBI Advisory on Overseas Forex Trading through Electronic / Internet
Trading Portals
The Reserve Bank today said resident Indians cannot trade in forex
market as per the existing regulation.
The existing regulations under Foreign Exchange Management Act (FEMA),
1999, do not permit residents to trade in foreign exchange in domestic
or overseas markets, RBI said in a statement.
The clarification of the RBI assumes significance in the light of
several people losing heavily in forge trade through internet portals
in the recent past.It also said, remittance in any form towards
overseas foreign exchange trading through electronic/internet trading
portals is not permitted under the FEMA.
RBI cautioned investors against advertisements issued by certain
electronic and 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 and investment schemes and entice them with promises of
disproportionate or exorbitant returns, it said.
RBI Advisory on Overseas Forex Trading through Electronic / Internet
Trading Portals
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.
Alpana Killawala
Chief General Manager
Press Release : 2010-2011/1196
--
Regards,
Parthiv Mehta
Trading Portals
The Reserve Bank today said resident Indians cannot trade in forex
market as per the existing regulation.
The existing regulations under Foreign Exchange Management Act (FEMA),
1999, do not permit residents to trade in foreign exchange in domestic
or overseas markets, RBI said in a statement.
The clarification of the RBI assumes significance in the light of
several people losing heavily in forge trade through internet portals
in the recent past.It also said, remittance in any form towards
overseas foreign exchange trading through electronic/internet trading
portals is not permitted under the FEMA.
RBI cautioned investors against advertisements issued by certain
electronic and 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 and investment schemes and entice them with promises of
disproportionate or exorbitant returns, it said.
RBI Advisory on Overseas Forex Trading through Electronic / Internet
Trading Portals
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.
Alpana Killawala
Chief General Manager
Press Release : 2010-2011/1196
--
Regards,
Parthiv Mehta
No comments:
Post a Comment