How to trade forex legally from india - fema

raviraj (Querist) 14 September 2018 This query is : Resolved
We know that forex trading is illegal in india , except for trading pairs listed on NSE.
FEMA prohibits trading in any overseas instrument where margin is invovled, My question is:

How can one do this legally ?
Is it legal, if an indian resident sets up a company abroad and the company does the trading in forex and other derivatives.

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M V Gupta (Expert) 15 September 2018
You may see the following circulars issued by the RBI under FEMA:
1. APD (DIR series) circular No.27 dt. 02-03-2002; 2. APD (DIR series) Circular No.66 dt. 13-01-2003; and
3. APD (DIR series) Circular No. 97 dt. 29-04-2003. vide RBI web site www.rbi.org.in/scripts.
Your proposal to establish a foreign company and undertake the business is also possiible. But this will entail a complicated procedures and formalities.

Dr J C Vashista (Expert) 16 September 2018
Commercial query.
Consult and engage local lawyer which you can afford.

Guest (Expert) 16 September 2018
You want to make forex trade, apparently to become rich, but want to acquire little bit of knowledge free of cost, which can prove to be totally harmful for you, as little knowledge is dangerous, particularly where maximum legal complications and hurdles are involved in forex.

Better consult some sound expert in Foreign Exchange and its trading. Otherwise, even a bit of lapse on your part can land you in jail due to serious charge of violation of FEMA.

Rest depends upon your own wisdom.

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