All US trading/investing from india questions answered

[Prayag]

Check this thread -

@nithin

Here is the link to the RBI circular on LRS .

All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges/ overseas counterparty are not allowed under the Scheme.

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Also, a Notification was issued by RBI on 23rd October 2020 (to be called Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020), which mentioned the following (on Page 3) -

3. Prohibition

Save as otherwise provided in these regulations and any other regulations issued under the Act and in force on the date of commencement of these regulations, no person shall post or collect margin for derivative contracts and pay or receive interest on such margin without the prior permission of the Reserve Bank.

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I have come across IBKR, which appears to allow buying options and deploying certain other option strategies to its Indian customers but after the new Notification from RBI, it seems even that would be not possible.