As i received answer from Ashish Davessar, You just given me half answer and which is correct, i.e. Forex trading is illegal for Individuals but my question is where law has forbidden forex trading for corporation. Please give me the link where it suggests that forex trading is illegal for corporation. As per FEMA Act Individuals are strictly forbidden for forex trading and i already know that rule so i will not trade in individual capacity.
Asked 4 years ago in Business Law from Mumbai, Maharashtra
In India, Foreign Exchange or Forex trading is not allowed. If someone is found trading Forex instruments on the forex market by the Reserve Bank of India’s representatives, he/she is immediately charged of violation of law. Hence it is legally a crime to involve in Forex trading and the charges of the crime are imprisonment in jail in this country. The offence is considered immense, the prediction of intensity can be deduced from this fact that it has been labeled to be non-bailable
.only corporations are allowed to trade but the conditionality for the corporations is to use only free dollars from their reserves. Free dollars usage means that they are not allowed to convert the Indian currency to dollars and then use those converted dollars for trading. Moreover they are conditioned to stick to a leverage of less than ten times
It will be naive of you to expect us to provide a complete legal literature or give you links as the advice solicited by you here is "free" in nature. Links can be found by you on a quick google search. So we confine ourselves to the core issue raised in the query. For complete answers contact a lawyer professionally.
I do countenance the answer of Mr.Sethi.