Can Indian Resident legally do U.S. Intraday Trading?
I am a resident Indian. I want a legal opinion on whether non-leveraged, same-day intraday trading of U.S.-listed common shares using LRS-remitted funds is permitted under FEMA/RBI rules.
Dear client, yes, it is possible. However, FEMA and RBI rules are stricter regarding speculative activities like intraday trading, especially if it involves leverage of frequent short-term transactions under it. Delivery based investment is generally considered compliant but for same day intraday trading in US markets, it is advisable to obtain professional FEMA or RBI compliance advice first before proceeding any further. I hope this answer your query, for further queries contact us.
Dear client, yes, it is possible. However, FEMA and RBI rules are stricter regarding speculative activities like intraday trading, especially if it involves leverage of frequent short-term transactions under it. Delivery based investment is generally considered compliant but for same day intraday trading in US markets, it is advisable to obtain professional FEMA or RBI compliance advice first before proceeding any further. I hope this answer your query, for further queries contact us.
Under Foreign Exchange Management Act, 1999 and RBI Liberalised Remittance Scheme (LRS), resident Indians can invest abroad in permitted assets. However, intraday or speculative trading in foreign equities is generally not permitted under LRS restrictions. Only permitted capital account transactions like listed securities investment are allowed. You should consult your bank/authorised dealer for compliance before trading. For further legal assistance contact us on our helpline number.
Related Questions
24x7 Help
If we fall short of your expectation in any way, let us know
Payment Trust
All refunds come with no questions asked guarantee
