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The regulatory status in India
Exinity Group does not operate a standalone retail brand for India. Indian residents are routed to the group's offshore entity, Exinity Limited (Mauritius), which is licensed by the FSC Mauritius as an Investment Dealer (licence #C113012295) but holds no SEBI or RBI licence. Trading spot forex or CFDs with this offshore entity is not permitted under RBI/FEMA rules for Indian residents, which only allow INR-based currency pairs on SEBI-recognised exchanges.
The practical implication is straightforward: you are looking at a broker that can accept you, but the legal framework in India does not sanction that transaction. This page breaks down what that means for your capital, your leverage, and your tax position, and what a stronger setup looks like if you decide to trade currency derivatives at all.
Regulatory split in India
India's regulatory architecture for forex is split between two bodies. SEBI regulates exchange-traded currency derivatives, while RBI governs all foreign exchange under FEMA 1999 and authorises Electronic Trading Platforms (ETPs). Currency derivatives trade on SEBI-recognised exchanges: NSE, BSE, and MSE.
The following conditions apply to what a resident can legally trade:
- Only INR-based currency pairs: USD/INR, EUR/INR, GBP/INR, JPY/INR
- Permitted cross-currency derivatives on the recognised exchanges
- Trading via SEBI-registered brokers with exchange-mandated margins
RBI/FEMA rules do not permit residents to trade spot forex or CFDs with offshore brokers. Remitting funds abroad for margin forex trading is not a permitted purpose under the Liberalised Remittance Scheme (LRS). The RBI Master Direction on ETPs also prohibits operating a forex trading platform in India without RBI authorisation.
Exinity's Position
Exinity Group is a Dubai-HQ fintech holding, the parent of FXTM and Alpari. The standalone Exinity brand is UAE-focused. No standalone retail accounts for India have been verified. Indian residents who sign up with the group go through FXTM under the offshore Exinity Limited (Mauritius) entity.
The table below summarises what is and is not verified for Indian residents:
| Item | Verified Status |
|---|---|
| SEBI/RBI licence | No |
| Regulator | FSC Mauritius (Investment Dealer #C113012295) |
| Standalone Exinity India accounts | Not verified |
| Base currency | USD (INR base account not verified) |
| Local INR payments | Not verified |
| Islamic/swap-free account | Available on FXTM; standalone Exinity not applicable |
| Platforms | MT4/MT5 (via FXTM) |
| Instruments | FX, metals, indices, CFDs (via FXTM) |
Offshore leverage vs. SEBI limits
The offshore route offers high leverage. FXTM on the Mauritius entity advertises up to roughly 1:2000, which is dramatically higher than what is legally available on Indian exchanges. SEBI does not impose a single fixed retail cap like ESMA; instead, exchange-traded INR currency derivatives are margin-based, using SEBI/exchange SPAN and exposure margins of roughly 3-5% of notional, which translates to about 20-30x leverage.
The gap is not a feature, it is a risk profile. At 1:2000, a 0.05% adverse move against your position wipes out the margin. At 20-30x, the same move is a minor fluctuation.
| Parameter | Offshore FX/CFD (FXTM) | SEBI Exchange-Traded |
|---|---|---|
| Leverage | Up to ~1:2000 | ~20-30x (3-5% margin) |
| Legal for residents | No | Yes |
| Pairs | FX, metals, indices, CFDs | INR pairs + permitted cross-currency |
| Settlement | USD | INR |
The regulatory reality for Indian traders
The most immediate risk is not market movement, it is the channel itself. An offshore FX/CFD offering to Indian residents is not permitted under FEMA/RBI, and only INR pairs via SEBI brokers are compliant. RBI publishes an Alert List of unauthorised forex trading platforms; as of 19 November 2025, it totals 95 entities. The list is not exhaustive and focuses on platforms soliciting Indian residents.
Capital repatriation is the second concern. Profits from an offshore account need to come back to India, and the original remittance for margin trading was not a permitted LRS purpose. Enforcement risk under FEMA sits with the resident, not the broker.
The tax treatment of what you do manage to trade is separate but connected. Exchange-traded currency futures and options profit is generally treated as non-speculative business income and taxed at your slab rate. Offshore CFD income has no such clean classification and is practically harder to report accurately.
A Stronger Setup
If you want to trade currency derivatives and stay inside the legal framework, the structure is clear: a SEBI-registered broker, an exchange-traded INR pair, and no offshore leverage beyond the exchange's margin requirements.
| Feature | Offshore (FXTM) | Exchange-Traded (SEBI) |
|---|---|---|
| Mobile platform | MT4/MT5 | Broker apps (Zerodha, Dhan, etc.) |
| Account base currency | USD | INR |
| KYC documents | PAN + address proof | PAN + Aadhaar + bank proof |
| Verification time | Not verified | Typically 24-48 hours |
| Deposit methods | Not verified | UPI, IMPS, NEFT, RTGS |
KYC for the legal route requires a PAN card (mandatory), Aadhaar, an address proof (Aadhaar, utility bill, or bank statement within ~3 months), and a cancelled cheque. Approval usually takes 24-48 hours. Settlement is fully in INR, so no domestic FX conversion is involved.
Tax clarity for indian traders
A trader who values legal certainty and clear tax treatment over offshore leverage. If you want to trade currency derivatives from your phone with UPI deposits, INR settlement, and a tax classification that the Income Tax Department can process without dispute, the SEBI-registered exchange route is the only one that fits. The margin is lower, but the position is defensible.
A trader chasing high leverage on FX and CFDs with a global brand. If the 1:2000 offshore leverage or access to global indices is the draw, the legal exposure under FEMA/RBI is a permanent overhang. The FSC Mauritius licence does not mitigate that. Look at the offshore offer with full awareness that the enforcement risk and capital repatriation issue sit with you, not with the broker.
Questions
What documents do I need to open a legal currency trading account?
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You need a PAN card (mandatory), Aadhaar, an address proof (Aadhaar, utility bill, or bank statement typically within ~3 months), and bank proof such as a cancelled cheque. Approval usually takes 24-48 hours.
Is the 20% TCS applicable if I fund an offshore trading account?
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Yes, if the remittance exceeds Rs 10 lakh per financial year. A 20% TCS applies on LRS foreign remittances above that threshold. The critical point is that margin forex trading is not a permitted LRS purpose, so the remittance itself is outside the legal framework regardless of the TCS.
Does a foreign FSC licence protect my money in India?
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No. The FSC Mauritius licence (Investment Dealer #C113012295) regulates Exinity Limited's conduct in Mauritius. It does not authorise the entity to solicit Indian residents, and it does not change the fact that the RBI/FEMA framework does not permit this type of offshore trading for residents.