Many Indians ask about the availability and if Forex Trading platforms are legal in the country. Unfortunately, the answer is No.
Long story short, this means that, although you may open an account from India with a foreign-based broker like eToro, it would be illegal. However, if you find an FX Broker regulated in India, you are good to go. For that matter, NordFX holds a 'Registered Stock Broker in Currency Derivative Segment' license issued by SEBI. So, by opening an account with NordFX, you can access the FX while living in India.
Who supervises the Financial Markets in India?
The Securities and Exchange Board of India was established on April 12, 1992, in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. The basic functions of the Securities and Exchange Board of India include:
Protect the interests of investors in securities and to promote the development of, and
Regulate the securities market and for matters connected therewith or incidental thereto.
Are there any FX Brokers regulated by SEBI?
SEBI (Securities and Exchange Board of India) forbids Indian citizens to conduct Forex transactions in Indian territory through international Forex trading platforms (According to a notice issued by the Reserve Bank of India in 2013) to minimize the risk Forex Trading bears.
However, if Forex transactions are carried out through a designated Forex trading platform and the base currency is INR (Indian Rupee), the transaction is legal. In short, the Indian government restricts the transactions of Indian residents and can only trade currency pairs based on Rupee.
