There are some sorts of regulation in india.
Trading in Forex-INDIA
"Forex means currency pair trading. Within Indian confinement, we could trade anything bench-marked against INR.
It is legal to trade with Indian Brokers providing access to Indian Exchanges(NSE,BSE,MCX-SX) providing access to Currency Derivatives. Currently the trading instruments are USDINR,JPYINR,GBPINR,EURINR.
Trading in Forex -MAJOR currency pairs
A widely traded currency pair is the relation of the euro against the US dollar, designated as EUR/USD. The quotation EUR/USD 1.2500 means that one euro is exchanged for 1.2500 US dollars. Here, EUR is the base currency and USD is the counter currency.
But its not possible for an indian to trade in this pairs.
Reasons
Reserve Bank of India is short of dollar denominators. That means, in-case you trade eur/usd with "out of india" players and, if you loose you would buy usd from RBI and send it away. This leads to increase in fiscal deficit( lack of foreign currency reserve).
If everybody in india trades forex with 'out of india' players, assuming the notorious nature of trading where 90% of traders eventually loose, RBI stands to loose alot of dollar. To compensate the outflow, our government will be forced to buy more US dollar, by selling INR at cheaper rates. Thus leads to devaluation of our INR."