It is better to trade with others rather than waste time discussing the intricacies of the RBI circulars and its implications. Knowing very well that is always against it, directly or indirectly through their statements one should not expect to have any kind of legal forex trading happening in India. the best way out is to seek it from other methods, however illegal it may seem to be. that is what most of the traders at present are doing. sooner or later this may have to be legalised as it cannot be simply banned as most bans were proved to be ineffective.