Adv. Siby Varghese, a prominent cyber law expert and founder of SHIELD Law Firm, states that while forex trading is permitted in India, it is governed by stringent regulations laid down by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Indian residents are legally allowed to trade only in currency pairs where the Indian Rupee (INR) is paired with major global currencies such as the USD, EUR, GBP, and JPY. Engaging in forex trading involving other currency pairs or using unregulated overseas platforms is considered illegal and may attract serious legal consequences, including substantial fines and imprisonment.

Siby Varghese explains that in India, the use of unauthorized forex trading platforms is strictly prohibited. While direct currency trading on the global foreign exchange market is not permitted for individual investors, regulated forex trading is allowed through recognized stock exchanges. He further notes that binary trading is explicitly banned under the Foreign Exchange Management Act (FEMA). Although dealing in foreign currencies is legal, Adv. Varghese emphasizes that it is subject to stringent regulatory restrictions set by the Reserve Bank of India (RBI) and other governing authorities.