Forex trading is a new way to dupe people in India. You must have seen ads on websites about Forex Trading. They promise you handsome returns on Forex trading, but do you know that Forex trading is banned in India by RBI. RBI recently came out with a circular to inform people that under Foreign Exchange Management Act, FEMA, 1999 that do not permit residents of India to trade in foreign exchange in domestic/overseas markets.
Forex trading is permitted in few countries, like U.S, Singapore etc, where they are regulated under Forex trading laws. Here in India, we do not have any trading exchange like BSE, which comes under SEBI.
Now some MLM companies have started Forex trading incentive based schemes. One such MLM company is Hyderabad-based Variety Consultancy. They promise to pay flat 15% income for 14 months on the principle amount.
On the invested amount company sells training and educational products that will help to learn and trade in foreign exchange (forex) and commodity trading.
They are offering three packages to the investors, which range from Rs.10,000 to as high as 2 Lakh. Like in MLM business model, Variety Consultancy also giving incentive on the introduction of new investors to the company.
After studying their business model, we reached to a conclusion that sooner or the later, people will lose money with this company. Not only the business model, company has not given any information like where they are investing the collected money from the investors.
