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Is binary trading legal in India
14-Jul-2023 (In Corporate Law)
I understand that Forex trading is illegal in India. But, please tell me if Binary Option Trading via online broking sites by registering myself as a Company legal? is quotex legal in india? If yes, then which type of Company needs to be incorporated and what different types of registrations are required? Thanks in Advance
Are you talking about bitcoins here? If yes, please note that so far it is not permitted in India. Rbi had issued a paper though sometime back In this regard. Let us have a word and I can advise you in little more detail in this regard.
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Adv. Mansi Airi Gambhir
Delhi | 25+ Answers
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How much tax is there on binary trading in India?
How is income generated from binary options trading in India taxed? In India, binary option trading is illegal. However, traders in the country still carry out this trading. The income generated from such trading is taxed. This income is taxed 30% as it is considered speculative. 4 May 2023
Is Quotex binary trading legal in India?
Quotex Trading App in India is legal. Traders should be aware of any restrictions and regulations that may apply to this platform. 21 Oct 2023
Is binary trading punishable in India?
Are Binary Options Legal in India? The Reserve Bank of India declared all online foreign exchange trading, including binary options, illegal. Foreign Exchange and Management Act prohibits Indian registered online trading portals to offer such derivatives. 31 Jan 2023
You are absolutely correct. In India, Foreign Exchange or Forex trading is not allowed. If someone is found trading Forex instruments on the forex market by the Reserve Bank of India’s representatives, he/she is immediately charged of violation of law. Hence it is legally a crime to involve in Forex trading and the charges of the crime are imprisonment in jail in this country. The offence is considered immense, the prediction of intensity can be deduced from this fact that it has been labelled to be non-bailable.
However it is legal to trade forex with Indian Exchanges like NSE, BSE, MCX-SX where they currently offer 4 pairs (USDINR, JPYINR, GBPINR, EURINR) in Derivatives (Futures and Options Segment). So if you are trading with Indian Brokers whom have membership with the above mentioned Indian Exchanges it is perfectly legal. Also it is legal for Indian Retail traders to invest in overseas equity markets. But margin trading in overseas is suppose to be illegal as per RBI regulation guidelines.
However it is legal to trade forex with Indian Exchanges like NSE, BSE, MCX-SX where they currently offer 4 pairs (USDINR, JPYINR, GBPINR, EURINR) in Derivatives (Futures and Options Segment). So if you are trading with Indian Brokers whom have membership with the above mentioned Indian Exchanges it is perfectly legal. Also it is legal for Indian Retail traders to invest in overseas equity markets. But margin trading in overseas is suppose to be illegal as per RBI regulation guidelines.
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Neither the Forex trading nor the binary trading is illegal in India provided you do it as per the norms of FEMA and SEBI. You need to get yourself registered as a trader as per the SEBI norms and then do your business as per the norms of FEMA only in INR:USD, INR:Euro etc but certainly not online.
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Adv. Pulkit Prakash
Delhi | 400+ Answers
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The Foreign Exchange and Management Act (FEMA) prohibits binary trading or forex trading in India through electronic or online trading portals. Any investor who takes up binary options in India does so on his own risk, with no law to regulate dealings of binary trading options in India. SEBI DOES'T ALLOW BINARY TRADING APPROX FROM FEB 2017 ONWORDS.
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Adv. Krishan Kumar
Jalandhar | 25+ Answers
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Investors who choose to trade binary options in India are doing so at their own peril, as there are no laws or regulations in place in India that regulate binary trading. A trader involved in IQ Option scams of binary trading in India has no legal recourse.
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Adv. Chikirsha Mohanty
Delhi | 200+ AnswersCONTACT NOW
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