The Question of legality on Forex trading in India:
The legality of forex trading is one of the trending topics in India. When we talk about the forex trading , first of all a question arises "Is forex trading legal in India?"
The Answer for the same question is ‘Yes' we can trade forex in India but in case of Retail Forex Trading in India, there are some limitations and restrictions which are imposed by the government authorities.


Forex Trading – Meaning:
The word forex comes from the foreign exchange market and  it means the global decentralized market which deals with the trading of currencies. The buyers can buy or trade forex in our country only with the Indian exchanges such as Bombay stock exchange, Multi commodity exchange and SX which presents and provides many Instruments and these instruments are very convenient for forex trading. Although these exchanges offers and provides USDINR ( United states dollar in Indian rupees), GBPINR (British pound / Indian rupees), JPYINR (Japanese yen / Indian rupees), EUPINR( Euro / Indian rupees). According to Foreign Exchange Management Act 1999 ( FEMA), Trade in Non Indian currency is illegal in nature.


Process of Forex Trading in India:
Several International forex brokers give permission to Indian traders for opening their accounts. Besides many of the forex brokers try to have academies for training of forex traders in many metro cities. Although if you are an Indian resident and want to trade forex, you are not allowed by law to trade in all the kinds of instruments.
In India, we can say that this globalized market of forex trading is not so much global in India. It would not be wrong to say that forex  market is decentralized. And many forex brokers take advantage in buying and selling of currencies. That is why some countries has limited the forex trading from the fear of sovereignty threat.
From the 1990s In India, the foreign exchange rules and regulations were very strict, but in last few years the Reserve bank of India has been given some relief to the forex traders. Therefore, the government has not debarred Indian resident from forex trading. It will not be prohibited if they are are trading in Indian currency / INR.
India is not just one country which has imposed  restrictions on forex business but there are approx. 20 countries in the world where forex trading is banned. The list the countries are as follows;
Indonesia, Bosnia and Herzegovina, Bulgaria, Belarus, Burma, China, Cuba, Ivory coast, Macedonia, Liberia, Iran, Montenegro, Myanmar, Malaysia, Nigeria, Pakistan, Quebec, Sudan, St. Helena, Ukraine, Zimbabwe, Sri Lanka ( some relaxation has given recently), Romania, South Korea.


Strategies Needed for Forex Trading in India:
-There is no doubt, forex trading is legal in India but it is considered as a very risky business.
-The main strategy that can help us is, to consult with any legal expert with the knowledge about all the legal aspects of the same business.
-The next strategy is that invest their money with approved brokers only because it will be secure for the forex traders


Conclusion:
Although forex trading is one of the widest market in the universe. But for trading in India must follow the government norms and conditions. If the business traders follow the norms and schemes, it will be beneficial for them. At last but not least the forex trading is legal with some necessary restrictions imposed by the government authorities for protecting the interest of the people of the nation. At last it can be said that the intent of Forex Trading in India if not misused can be beneficial for all traders.