FEMA Question for Option Trading
This query is : Resolved
06 June 2026
Hey, quick question - I'm an Indian resident with a pre-existing Charles Schwab account, funds built entirely while living abroad. Currently trading options on a cash account under FEMA Section 6(4). Schwab allows upgrading to Level 2 margin account for multi-leg spreads - no actual borrowing involved, just an account classification change. Would this be permissible under FEMA? Would love your thoughts.
06 June 2026
Generally prohibited under FEMA for Indian residents, even if the account is "fully funded" or leverage is not utilized. Upgrading to a "margin" account is likely to be viewed as a violation of permissible investment activities under the LRS framework. Keep the account as a "Cash Account" to maintain compliance and consult a qualified FEMA expert for further clarification.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Gift of mutual fund units to daughter
- TDS ON CASH WITHDRAWALS...
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Pan Card apply for Self help group
- Reporting of STCG on Property in ITR
- Error while filling exam form November 2026
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
