The Reserve Bank of India (RBI) has noticed advertisements issued by electronic/internet portals offering trading or investing in foreign exchange with guaranteed high returns are illegal and the people should beware of the risks, said Chief General Manager Alpana Killawala in a press release here on Thursday. 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, she added. 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, said the press release. 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. The Reserve Bank of India on Thursday 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. 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.
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