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Margin Trading in India
Margin trading in India: SEBI regulations, available platforms, and the 30% crypto tax. What Indian traders need to know.
📋 Regulatory Overview
Regulator SEBI, RBI
Status Legal for stocks; crypto in gray area
India regulates traditional margin trading through SEBI (Securities and Exchange Board of India). Crypto regulation is evolving, with a 30% tax on crypto gains and 1% TDS on crypto transactions. International crypto exchanges operate in a regulatory gray area.
🏆 Top Platforms for India
⚠️ Legal Restrictions & Requirements
- SEBI regulates stock market margin trading (max 5x for intraday)
- 30% flat tax on all crypto gains (no deductions except acquisition cost)
- 1% TDS on all crypto transactions above ₹10,000
- Crypto losses cannot be offset against other income
- Forex trading restricted to INR pairs through SEBI-registered brokers
- International exchanges operate in regulatory uncertainty
💰 Tax Implications
Effective Tax Rate 10-30% (crypto: flat 30%)
Stock trading: Short-term (held <1 year) at 15%, Long-term at 10% above ₹1 lakh. Crypto: Flat 30% tax on all gains with 1% TDS on transfers. Crypto losses cannot offset other income or be carried forward.
Disclaimer: This information is for educational purposes only and should not be considered legal or tax advice. Regulations change frequently. Always consult a qualified professional in your jurisdiction.