What are some precautions with Foreign Exchange Management Act, India when earning money through Forex in India?

External question — Personal Finance Stack Exchange Author: harvardfail Original post: https://money.stackexchange.com/questions/78641 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I have almost $7 Million to trade in forex and I am learning new forex strategies day by day and mastering two of them. I have trading with my demo account for almost 5 months but I am still not able to find out whether Indian traders have to register with Foreign Exchange Management Act (FEMA) after earning from Forex. Do we have to take precautions with FEMA or can we face problem of any kind from FEMA. What are additional things I should about FEMA know when earning through Forex.

External answer — Personal Finance Stack Exchange Author: Dheer Original post: https://money.stackexchange.com/a/78668 License: CC BY-SA 3.0 — https://creativecommons.org/licenses/by-sa/3.0/ Adaptation: HTML converted to plain text; contact email addresses removed. With $7 Million at stake I guess it would be prudent to take legal advise as well as advise from qualified CA. Forex trading for select currency pair [with one leg in INR] is allowed. Ex USDINR, EURINR, JPYINR, GBPINR. Forex trading for pairs without INR or not in the above list is NOT allowed.