The important bit to note here is that these are futures contracts. Currently, all products that are trading at NSE IFSC or BSE India INX - International exchanges based out of GIFT City in Ahmedabad are futures and options. Btw, these are truly international exchanges, which means all settlement happens in US Dollars. There is no STT and Stamp duty, and a lot of more sops to attract foreign investors/traders.
Indian retail investors under liberalised remittance scheme (LRS) can invest in International markets up to USD 250,000 per year. But this money can’t be used to trade futures, options, or any other leveraged product. Since all products introduced on international exchanges at GIFT are F&O, Indians can’t participate as of now. Whenever we have a depository (like CDSL/NSDL) in GIFT and exchanges start allowing buying of stocks - these exchanges will open up to all of us. (Btw, don’t see that happening anytime soon). Until then these exchanges are accessible only to FIIs, FPIs, NRIs, brokers with prop trading desks, etc.
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.