I think since many people are interested (already got a few DMs), i’ll just name the broker. I spoke with Interactive Brokers some 4-5 months back. First they had listed the types of options that can be traded in Cash accounts by Indian residents, I thought they wrongly just copy pasted the US page in India, and honestly it was copy pasted. But then I called then and confirmed twice, and reminded them about LRS. They still said we are aware, you can do everything that’s allowed in a Cash account. I checked FINRA rules, and they mentioned Options are allowed in cash account, where the entire risk is covered, so cash secured puts and covered calls are obviously allowed. I think even LRS would’t restrict that. For vertical spreads they mentioned that the option has to be European styled cash settled, so I found only SPX and may be a few other indices that fit that criteria.
This research was done some 4-5 months back and was very limited so I did not save links to my research. I’ll try to find those rules and post it here. I think the FINRA rules can be easily found. Not able to find the page on IB’s website as there website is a mess. Apart from the homepage, the entire website is a mix of Indian and US pages. Navigation is difficult.
Edit: Just went through IBs website, they have changed a few things with navigation. Will try to find it.
Edit: Good luck. I forwarded this page to someone months back, whatsapp had it backed up. here’s the IB link,
