• Binary trading

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.
My question is whether i need to form a company or i can open sole proprietary firm or by forming partnership firm, which way it is possible.
Asked 2 years ago in Business Law from Mumbai, Maharashtra
The RBI 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), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms/Anti Money Laundering (AML) standards.”

The message is clear. Remittances for such trades are not permitted under the law. Legal action can be taken against Indian residents collecting and remitting such payments. Forex market experts concur on the legal aspect.
Ajay Sethi
Advocate, Mumbai
23370 Answers
1224 Consultations
5.0 on 5.0
Mr. Sethi is rightly advise
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Business Lawyers

T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23370 Answers
1224 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18190 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2771 Answers
41 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
5.0 on 5.0
Lakshmi Kanth
Advocate, Hyderabad
230 Answers
2 Consultations
4.8 on 5.0
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
5.0 on 5.0