Why isn't trading for retail Indian clients allowed on the international exchange at GIFT City?

I heard about NSE and BSE starting international exchanges coming up in GIFT city, but Indian retail traders won't be allowed to trade? No mention of retail Indian trading on this article on Moneycontrol. Why is that?

The way the international exchanges are set up in GIFT is like say how the free trade zone works in Dubai. It is called IFSC or International Financial Service Center. It is a special economic zone, No STT, CTT, etc. Only MAT (Minimum Alternate Tax) of 9%.

It is an international financial service center, so all business transactions will take place in foreign currencies. So even though the exchange is situated within India, it is as if it were outside the country.

Resident Indians, under Liberalized Remittance Scheme ( LRS), are allowed to invest upto USD 250,000 per year outside India. But this money can be used only to buy stocks, real estate, or any asset which doesn’t have leverage (so no F&O trading).

Currently the BSE international exchange (IndiaINX) is allowing trading of derivatives only and not equity stocks. Hence, Indian retail clients would not be able to trade on this exchange.

This exchange will hopefully attract the FII crowd that otherwise trades Nifty on the Singapore or Dubai exchanges. NRI’s have to go through the painful custodial participant route to trade F&O on NSE/BSE, but an international exchange will make it very simple for them.