US Derivatives Trading for Returning NRIs


I am looking for potential ways to trade options and futures in US stock markets for a returning NRI (who would soon loose their NRI status and become Indian resident for tax purposes).

This person already has a certain amount of money present in US bank accounts in USD. I understand that RBI’s FEMA guidelines prohibit Indian residents trading derivatives on money wired from India, however this person already has money overseas.

If it is not possible for Indian residents to trade derivatives, how about Institutional investors? Can one trade by setting up a US registered entity?


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Hi I am in the same boat. I have checked with Interactive Brokers and Schwab they don’t allow derivatives trading for Indian residents. Did you find any solution to this?