Trading through online brokers in Foreign Currency may lead to violation of FEMA. ( Foreign Exchange Management Act ).

2)Reserve Bank of India issued Circular No. 46, RBI/2013-14/265 A.P. (DIR Series) ,dated 17/09/ 2013,prohibiting overseas foreign exchange trading through electronic/internet trading portals and further clarified in the notification that anyone caught dealing in overseas foreign exchange trading would make himself/ herself / themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards any kind of transactions in virtual currency is prohibited in India.

Recognised stock exchanges are also permitted to offer exchange traded currency option contracts in EUR-INR, GBP-INR and JPY-INR in addition to the existing USD-INR option contract,

you can trade only through recognised exchanges and not through Japanese website

In India Sebi doesn't allow binary options on regulated derivative exchanges and they are illegal.

economictimes.indiatimes.com/definition/binary-options

2)RBI Circular of 2013 applies to binary options

I came to know of a Japanese website https://trade200.com (It’s in Japanese and you can translate the page in chrome for more info). I fully understand the risk involved in this. I just want to know whether trading on this site is legal in India.Trading in this site involves USD/JPY,EUR/JPY,EUR/USD,GBP/USD.

In India Sebi doesn't allow binary options on regulated derivative exchanges and they are illegal.

Further, Reserve Bank of India issued notification Circular No. 46, RBI/2013-14/265 A.P. (DIR Series) ,dated 17/09/ 2013,prohibiting overseas foreign exchange trading through electronic/internet trading portals and further clarified in the notification that anyone caught dealing in overseas foreign exchange trading would make himself/ herself / themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards any kind of transactions in virtual currency is prohibited in India.

According to Economic Times, they have written that RBI has allowed more three currency to trade in India it is EUR-USD(euro-dollar), GBP-USD(pound-dollar) and USD-JPY (dollar-yen). Any advice on this:

m the link what you have provided you can see that this is not for the binary options.

It is for the forex trading an not binary trading options.

This is regarding offshore currency exposures as the Reserve Bank of India has allowed three more cross currency pairs, to be traded in the exchange traded derivatives market including futures and options.

Binary options are a popular investment option where rather than buying a stock and hoping it goes up in value, you simply predict whether the stock (or any other tradable asset) will go up or down during a set period of time. If the asset goes in the direction you predicted, over the time period specified, your investment pays out. If it doesn’t, you lose the money you invested.

The term ‘binary’ refers to any system that only has two options. In the case of binary options, you either profit on your full investment, or you lose your full investment

But I don't know about Binary Options.. binary options are not regulated by SEBI but does that mean it is prohibited under the law? there is no specific law for binary options. For example, the following rule states that the Forex Trading is illegal.but does it apply to binary options RBI/2013-14/265 A.P. (DIR Series) Circular No. 46 dated [deleted]. Binary options are very much different from Forex Trading as there is no MARGIN TRADING involved.. there is no sale and purchase of currencies. It is just a speculation on the price movement.

Any advice on this? As of now, are there any specific rules regarding Binary options

There are no specific rule to allow the binary options nor there is any specific law prohibiting the same, but it is illegal under FEMA.

RBI clearly clarified in the notification that anyone caught dealing in overseas foreign exchange trading would make himself/ herself / themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards any kind of transactions in virtual currency is prohibited in India.ow you can decide about this.

The forex trading is involving foreign currency and INR of select few countries;

Recognized stock exchanges are also permitted to offer exchange traded currency option contracts in EUR-INR, GBP-INR and JPY-INR in addition to the existing USD-INR option contract,

Sir, Trading with foreign currency in india ( without sebi and rbi approval ) is illegal and punishable offence under prevention of money laundering act, undisclosed foreign income act and IT laws. But, the income should be included on your IT declaration. You may discuss with me for more info. on this.

Thanks,

Adv.Niranjan,

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