If you’re asking which forex trading is legal in India, the answer is clear: only trading INR-based currency pairs via SEBI-registered brokers on Indian exchanges is legal. This framework is regulated by the Reserve Bank of India (RBI) under FEMA (Foreign Exchange Management Act) and enforced by SEBI (Securities and Exchange Board of India).

What Is Legal: INR-Based Currency Pairs

Indian residents can legally trade the following pairs on NSE, BSE, and MSEI:

• USD/INR
• EUR/INR
• GBP/INR
• JPY/INR

These pairs can only be traded through currency futures and options, not the spot forex market.

Where To Trade Legally

Use SEBI-registered brokers and their trading apps:

• Zerodha Kite
• Upstox Pro
• ICICI Direct Markets App
• Angel One App
• HDFC Securities

These platforms route trades to Indian exchanges and comply fully with RBI guidelines.

What Is Illegal In India

The following are not permitted for Indian residents:

• Trading non-INR pairs like EUR/USD, GBP/JPY, USD/CHF
• Using offshore forex brokers like Exness, Octa, FBS, IC Markets
• Trading via apps offering high leverage or crypto funding
• Violating FEMA can result in penalties, frozen accounts, or prosecution

Why These Rules Exist

• To protect the rupee (INR) from volatility
• To prevent capital flight and money laundering
• To keep forex speculation under tight regulation

Conclusion

If you’re asking which forex trading is legal in India, the answer is: INR-based pairs traded via SEBI-registered brokers on recognised Indian exchanges. Trading other pairs or using offshore platforms is illegal under Indian law.

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