I actually couldn’t finish my question, submitted by mistake and couldn’t edit later on, sorry for that. The article you linked here makes sense, that’s completely illegal. What I am getting at is those broker in the USA legally allow me to open a margin account as well, but obviously, they are not responsible if I break the law.
I was thinking if I am wiring the money as a capital transaction (allowed under LRS) and not for margin calls or remittance, but once I get my cash there, I could either buy shares (which is legal) or use that cash for derivatives, and bring that cash back and show it as profit or loss, that should be fine I guess, I’ve seen a few members of other forum do this and report it back in their ITR. I am not contacting any Indian broker here like in the article, I’ve contacted TD Ameritrade directly and they said yes for margin account opening.
That line to ME “margins or margin calls to overseas exchanges/ overseas counterparty” means that it’s illegal for a broker to remit margin to an overseas exchange or counterparty, hence a broker cannot linked to any exchange or counterparty abroad. Here I am wiring the money to my trading account which is legal, and from there my broker takes care of margin transactions with that cash. I understand I am trying to mould the interpretation to my liking, but I hope this is possible.