All US trading/investing from india questions answered

I faced a similar issue like this today (not using any VPN). But then I tried to continue the account opening process using their mobile app instead and there it did end up showing India as an option for the country of residence

@lazy Recently, I came across an article which talked about moving the whole LRS process online (including the filing of A2 Form) - Even though that is limited to a specific Indian fintech and private bank, I wanted to ask if something similar has also been implemented by any of the foreign brokers mentioned above?

Just got an email today morning from HDFC Bank that they have enabled investing in US stocks through their HDFC InvestNow platform. The US brokerage firm that will hold the shares in US is DriveWealth (same as that of Vested Finance). Finally the dawn of a bright and glorious day.

@siva @nithin are you close on USA platform , any thing expected to invest in USA , if zerodha will open a door to invest in overseas

Not yet, look like this may take more time than anticipated due to current situation.

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You can check with HDFC Bank as they have enabled it recently. I already posted the link above –

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Interactivebrokers allows trading in global markets…Check their website or customer support.

I know some people at icici, they assisted me to do transfer via online. Through icici money2world but there is no option there for LRS portfolio investment… So you need someone from Bank to assist you.

Normally it’s not possible, you need an expert from Bank.

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LRS transactions through HDFC Bank are entirely online now. You don’t need to visit bank or submit hardcopy of Form-A2 by visiting any bank. I use HDFC hence I can only speak for them. I am not aware of other banks.


Where does RBI or FEMA or another law applicable to resident Indian citizens prohibit BUYING options? Please share link or text of rule, etc. Thanks

Check this thread -

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.

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.

Please point out if anything else is relevant to the context of buying options. If not, one pays full cost of the option when one buys. There is no margin involved in buying an option on full premium. I agree an option is a derivative contract but a derivative contract is nowhere prohibited or restricted. Only outward remittance towards margin is prohibited. For example if you buy a futures contract at full price paying zero margin, is that prohibited? No. I didn’t know IBKR is doing it, but how does this notification or any other rule/law applicable to the situation restrain IBKR from doing it?

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I am not an expert in this domain. Your question yesterday is what triggered me to search more about this topic. That search led me to the October 23rd 2020 Notification. My knowledge about this topic is mainly derived from another thread related to this topic - Trading Derivatives in USA from India. That thread contains a lot of varying viewpoints about this (including forum members like @Pro_Trader1 filing an RTI to get clarification about this from RBI and SEBI). I had raised the query about buying options on that thread with context to the new Notification (no responses to that yet).

I too was of the opinion that option buying shouldn’t be an issue but after seeing the new notification, my view changed because it explicitly mentions about the prohibition of posting margin for derivative contracts (while precisely defining what terms like Derivative and Margin mean). Also, when I read post margin for derivative contracts, I understood that as the money one sends for buying a derivative contract. Again, I am neither a lawyer nor an expert in this domain and I can understand that someone else might interpret posting margin as meaning “sending money in case of margin call”. And like @Pro_Trader1 said in that other thread, it is best to get clarity about this from a person who is dealing with FEMA related matters/cases on a regular basis.

One other way to get clarity about this might be by asking IBKR directly about it. Because they are a reputed international broker and they would definitely have done their due diligence (including about FEMA) before providing this facility to Indian customers

Thanks for your effort. Because lot of experts don’t know what you say.

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they mentioned in circular trading of derivative products and leveraged not aallowed

correct. that makes buying options on stocks permitted. RBIs RTI reply posted on the other thread referred by Prayag above is also silent on options on stocks.

I tried to make transfer using HDFC bank net banking to purchase stocks to tasty. Hdfc bank refused to process transaction stating as beneficiary is using apex clearing, which they have prohibited. WeBull also uses Apex clearing to accept wire transfer. How did you make transfer?? Did you also withdrew money sometimes?? @lazy

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Bringing back money from foreign broker
Can somebody who has been trading in foreign equity regularly mention whether Indian Individual investors are required to repatriate proceeds from sale of foreign equity within 90 days ?

ICICI Bank requires this in a form for inward transfers from brokers

use icici money 2 world

updating, you can transfer money through online via icici money 2 world with no assistance, and have the option for portfolio investment.