Since trades are happening through your NRI brothers account, and if he is allowed to trade forex in the country of residence, there is no legal implications. But this will still not be in sync with spirit of law set by RBI/SEBI which disallows Indian residents to trade forex or any kind of derivatives.
If you anyways decide to trade, the money transferred to your brother could be shown as a loan and if you take back principal+ returns, you’d have to pay taxes on your profits as per the tax slab you fall in. Since he is your brother, you can show this as a gift to him and a gift back (which has no tax liability). But your brother will have to pay taxes on the profits in country of residence as per the tax slabs there.
1 Like