With no laws or rules to regulate binary trading in India, investors who are involved in binary options in India do so at their own risk. There is no legal remedy available to a trader who gets involved in an IQ option scam of binary trading in India.
Is it legal to trade in the shares of companies?
- As per the Securities Contracts (Regulation) Act, 1956. (SCRA), trading in the shares of companies between persons other than members of a recognized stock exchange is illegal.
Do traders assist each other to avoid delivery of shares?
- 48The staff has observed that traders may assist each other and act as facilitators for one another to avoid having to deliver shares. 13 This Risk Alert is intended to highlight for firms risks that the staff has identified in the course of examinations regarding certain options trading strategies.
Are there profit opportunities in option trading?
- In the extreme, these price differences can be quite large, creating potential profit opportunities in certain option trading strategies for those who are able to short the underlying equity securities without paying the high cost typically associated with obtaining for delivery the hard to borrow securities that were sold short. II.
Does options trading pose regulatory and reputational risks for broker-dealers?
- Conclusion This options trading activity poses regulatory and reputational risks for broker-dealers and their correspondent clearing firms. The criteria and techniques listed above could be helpful in protecting a broker-dealer or clearing firm from these risks.
At this point, it should be remembered that under the Foreign Exchange Management Act (FEMA) of 1999, illegal forex trading in India can result in jail or a fine. However, it should be noted that there is no ban on NRIs doing foreign exchange trading in India.