Is binary trading legal in India

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.

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.

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.