Securities and Exchange Board of India (SEBI)
The Securities and Exchange Board of India (SEBI) is India’s financial regulatory body overseeing securities markets, including derivatives and investment intermediaries. While SEBI does not directly regulate spot forex trading, it authorizes exchange-traded currency derivatives and strictly limits forex trading to platforms regulated by the Reserve Bank of India (RBI) and approved exchanges like NSE, BSE, and MSE.
The Securities and Exchange Board of India (SEBI) enforces a tightly controlled regulatory environment for forex trading, limited to exchange-traded derivatives. Indian traders must use SEBI-registered brokers and trade only approved currency contracts. For safety and legal compliance, avoid offshore forex platforms.
- Currency derivatives traded on NSE/BSE/MSE typically have leverage around 20:1
- Retail margin forex trading through offshore brokers is illegal for Indian residents
- SEBI ensures leverage is managed via initial and maintenance margin requirements
- Regulates currency futures and options listed on Indian exchanges
- Authorizes brokers to operate under Category I and II registration
- Coordinates with RBI for broader forex and cross-border investment policy
- Ensures investor protection, risk disclosures, and fair market conduct
- Visit the SEBI Intermediary Portal
- Search by broker name, SEBI registration number, or PAN
- Confirm the exchange memberships and compliance categories
- Must be registered as SEBI-authorized trading members
- Required to report client positions and margin usage
- Must comply with margin trading, position limits, and disclosure norms
- Retail clients must provide KYC and risk acknowledgment before trading
- Brokers cannot offer margin forex via offshore platforms to Indian residents
Advantages
- Strong alignment with RBI and regulated exchanges
- Real-time monitoring of currency derivative markets
- Transparent broker registration and reporting framework
- Investor grievance redressal via SCORES and Exchange mechanisms
Limitations
- Spot forex and margin trading with offshore brokers is illegal
- No access to international forex pairs or high leverage
- Limited flexibility compared to global forex jurisdictions
Country
India
Established
1992
Contact
022 2644 9000
Complaint bodies
Securities and Exchange Board of India (SEBI) Exchange Arbitration Panel (NSE/BSE) Investor Grievance Redressal Mechanism (SCORES)
Hotline
1800 266 7575
Complaint email
Last updated on: March 28, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.