Penalty for NRI trading as Resident

#1
Hello all,

My father is an NRI and he participated in stock exchange saying as Resident. I have read somewhere that it is illegal to do so. is it? is there any loopholes?

i would like to know what will be the penalty / consequence for doing this?

he is been doing it for some years now, he did file income tax returns (it's loss in all years - huge losses actually).

It would be great if someone can detail about this.

thanks in advance.
 

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