Indian residents can trade in foriegn derivatives
hi
i would like to clarify on the misconception that forex trading is illegal for Indians. Indian residents can transfer funds to international brokers for trading in derivatives (equities, commodities and forex) under the liberalized scheme for up to $200,000). You can check the RBI circular for the same. however it is confirmed that fund transfer cannot be effected for margins and margin calls.
what is not yet approved by RBI is for a firm other than AD1s (Banks) to provide OTC products in India. Currently only corporates with forex exposure are allowed to trade in OTC products through indian banks. If OTC is allowed to be traded in India for Individuals, then without doing a wire transfer to foreign firms, we can pay in INR and can trade in international FOREX pairs.