you can trade USD/INR on NSE.
last time i checked they had dubai exchanges and mcx. Don't know if something changed.
That was one of the reasons i wanted to trade with IB. But when i checked with them they said I will have to take the risk as it is illegal for indian traders to trade on margin a/c in foreign exchanges.
They are aware it its illegal , but they say customer has to decide if he wants to take that risk. What BS, if it is illegal , they should say it , but they are getting good business.
Just like FOREX , if any of the banks or govt inst comes to know about IB , you will have to pay a hefty penalty. But they are only looking out for their own interest not the customers.
Same goes with the so called FOREX brokers who are established in India. No respect for the law of the land when it comes to business.
Hopefully Modiji's govt will make a change in this.