Can Indian companies trade in US commodity markets?

[Ishwar]

I would like to know if Indian companies can do proprietary trading on US commodity exchanges? If so, what are the requirements to do this?

Thanks.

[Srinivas]

If a prop trading firm wants to trade in the derivatives market of a foreign county, then they have to setup a firm registered in that country to trade.

@nithin, please correct me if wrong.

[TAXIQ.IN]

A Resident is not allowed under FEMA to enter in to derivative transactions except as provided in Schedule 1 ie for importers and exporters or person exposed to foreign currency loans. The RBI Circular https://www.rbi.org.in/scripts/BS_ECMNotificationUserView.aspx?Id=179

[nithin]

@TAXIQ.IN

A Resident is not allowed under FEMA to enter in to derivative transactions except as provided in Schedule 1 ie for importers and exporters or person exposed to foreign currency loans. The RBI Circular Reserve Bank of India - Exchange Control Manual Notification

So to add on, Indian companies also can user international derivatives only for hedging against any other trade exposure. So yeah, you will need to setup an entity abroad and do it through that.