ExinityRisk Retail accounts frequently lose money on leveraged CFDs - risk only spare capital.
Yes Bank
If you are looking at Yes Bank (YESBANK) as a trade, the first thing to understand is how to get exposure to it. The primary way is through cash or derivatives on the NSE, but many Indian traders also explore CFDs to speculate on the price with leverage. For those considering the CFD route, a broker like Exinity (operating via FXTM) might appear, but it is important to note that this path is not straightforward for residents of India.
Yes Bank Limited, with ticker YESBANK on the NSE, is a mid-cap banking stock. It is known for its high trading volumes and low absolute share price, making it a favorite among retail investors looking for a potential turnaround story after its restructuring. However, the stock is a non-payer of dividends and exhibits high volatility. Before you decide how to trade it, let's break down the practical options, the regulatory reality for Indian residents, and what to look for in a broker.
Understanding Your Options
You have two main routes to trade YESBANK: through the SEBI-regulated Indian exchanges or through an international offshore broker offering CFDs. The exchange route involves buying shares or trading in F&O (futures and options) directly on the NSE or BSE. This is fully compliant under Indian law, settled in INR, and requires a domestic broking account.
The offshore route, which is what international brokers like Exinity (via FXTM) offer, provides a CFD on the YESBANK share price. Here, you are not buying the underlying stock; you are speculating on its price movement with leverage. This allows for higher potential gains but also magnifies losses. The critical distinction lies not in the mechanics of the trade, but in the legal framework governing it for Indian residents.
The Regulatory Reality for Indian Residents
This is where the clarity is needed. Exinity Group, a Dubai-HQ fintech holding, is the parent of FXTM and Alpari. For traders in India, there is no standalone Exinity retail brand; the group exposure comes via FXTM under offshore Exinity Limited, which is licensed in Mauritius as an Investment Dealer (License #C113012295).
Exinity does not hold a SEBI or RBI licence. This means trading spot forex or CFDs with this offshore broker is not permitted under RBI/FEMA rules for Indian residents. Under the Foreign Exchange Management Act, residents are allowed to trade only INR-based currency pairs on SEBI-recognised exchanges. Remitting funds abroad for margin forex trading is not a permitted purpose under the Liberalised Remittance Scheme (LRS). So, while the broker may accept clients from India, doing so places the trader in a legally restricted zone.
This does not mean you cannot trade YESBANK at all. It means you must choose a legal channel. For residents, the correct way to trade YESBANK is through a SEBI-registered broker on the NSE or BSE.
Key Details at a Glance
| Feature | YESBANK (NSE) | Exinity (via FXTM) |
|---|---|---|
| Market | Indian Stock Exchange (NSE/BSE) | Offshore CFD Broker |
| Regulation | SEBI (India) | FSC Mauritius (Offshore) |
| Legal for Indian Residents | Yes | Not permitted under RBI/FEMA |
| Settlement Currency | INR | USD (INR base not verified) |
| Leverage | Margin-based (~3-5% margin) | Up to ~1:2000 (Mauritius entity) |
| Local Payments (UPI/IMPS) | Yes (INR rails) | Not verified at review |
Understanding the key risks
There are specific risks associated with trading a stock like YESBANK and with using an offshore platform. Understanding these is part of making an informed decision.
Taxation on Trading Profits
If you trade YESBANK on a compliant Indian exchange, your tax obligations are clear. Profits from exchange-traded currency futures and options are generally treated as non-speculative business income and taxed at your individual income-tax slab rates. Intraday speculative positions are treated as speculative business income, where losses can only be set off against speculative income and can be carried forward for 4 years. Non-speculative losses can be carried forward for 8 years.
You must declare your worldwide income and any foreign assets in your Income Tax Return (Schedule FA). If you were to open an offshore account, you must also pay attention to the Tax Collected at Source (TCS). A 20% TCS applies on LRS foreign remittances above Rs 10 lakh per financial year. This TCS is an advance-tax credit, but it does tie up your capital.
After Weighing the Evidence
The question isn't just "how to trade YESBANK," but "what is the correct and safe way to do it." For Indian residents, the regulatory boundary is clear. The legal route is exclusive to SEBI-registered exchanges.
This setup is for traders who prioritise full legal compliance and capital safety. If you want to trade YESBANK with transparent terms, INR settlement, and regulatory protection, a domestic SEBI-registered broker is the only tenable option. This is the route for those who value the ability to set off losses, utilise standard margin rules, and have access to the exchange's clearing house guarantee.
This setup is not for traders seeking extremely high leverage on a volatile, low-priced stock. If you are tempted by the idea of trading a YESBANK CFD with 1:2000 leverage, it is crucial to understand the prohibitive legal status. For traders who want a more strictly regulated international environment, the absence of a SEBI or RBI license means you should look towards internationally regulated brokers with a strong track record in a major jurisdiction. But for this specific contract, the legal restrictions for Indian residents are decisive.
Questions
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Local payments: Not verified at review.
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Account currencies: USD; INR base account not verified at review.
Is Exinity regulated in India?
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Exinity operates not locally regulated in India. Offshore FX/CFD offering to Indian residents sits in a legal grey area under FEMA/RBI (only INR pairs via SEBI brokers are compliant). Check the entity on the regulator's register before depositing.