6 minute read
Is Pocket Option SEBI Registered? What You Need to Know
from Pocket Option
No, Pocket Option is not registered with SEBI (Securities and Exchange Board of India). If you are an Indian trader considering this platform, it’s essential to understand what this means for your trading experience and your legal and financial safety.
Let’s dive into why this matters, what SEBI registration is, what risks you face trading on unregulated platforms, and what alternatives are available.
💥 Trade with Pocket Option now: Open An Account or Visit Brokers 👈
What Is SEBI and Why Does Registration Matter?
SEBI is the regulatory authority for securities and financial markets in India. Established under the SEBI Act of 1992, it oversees and regulates stock exchanges, brokers, mutual funds, and other entities involved in the Indian financial markets. Its role is to protect investors, maintain fair market practices, and prevent fraud.
When a broker is SEBI registered, it means:
The broker follows Indian financial regulations.
The broker is accountable to Indian legal authorities.
Clients are protected under Indian financial laws.
There is legal recourse if things go wrong.
If a platform is not SEBI registered, Indian authorities have limited power to protect you as a consumer.
Is Pocket Option a Legitimate Broker?
Pocket Option is an online trading platform owned by Gembell Limited, a company based in the Marshall Islands. The platform offers:
Binary options trading
Forex and CFD instruments
A mobile-friendly app with social trading features
A low deposit requirement ($5)
Fast sign-up and demo trading
While these features are attractive, Pocket Option is not regulated by any Tier-1 or Tier-2 financial authority like SEBI, FCA (UK), or ASIC (Australia). It only has a license from the IFMRRC (International Financial Market Relations Regulation Center) — a non-governmental, non-official organization. This license does not carry real legal weight in financial jurisdictions.
So while Pocket Option may function as a broker, it is not legally licensed to offer services to Indian residents under SEBI regulations.
Can You Use Pocket Option in India?
Technically, yes — Indian traders can access and trade on Pocket Option, as the platform is available online and does not block Indian IP addresses. There’s no strict geoblocking or KYC requirement tied specifically to Indian citizenship during sign-up.
However, this does not make it legal or advisable. Here's why:
Lack of SEBI oversight: You’re not protected under Indian law.
Banking and withdrawal issues: Using international brokers could lead to complications with your Indian bank or RBI restrictions.
Tax complications: Reporting and paying taxes on income from an unregulated foreign broker is complex and carries legal risk.
High risk of scams: Binary options trading itself is banned or heavily restricted in many countries, including India.
So while you can use it, you shouldn’t — especially if you're looking for legal safety and long-term stability.
Is Binary Options Trading Legal in India?
Binary options trading is illegal in India under SEBI guidelines. Binary options are considered a form of gambling rather than investing or trading. SEBI and the Reserve Bank of India (RBI) have not authorized any brokers to offer binary options to Indian residents.
Trading in such instruments from India can:
Violate FEMA (Foreign Exchange Management Act) rules.
Expose you to scams and unregulated platforms.
Leave you with no legal recourse in case of fraud, platform closure, or withdrawal problems.
So even if a platform like Pocket Option allows you to sign up and trade, you are operating outside the boundaries of Indian financial law.
💥 Trade with Pocket Option now: Open An Account or Visit Brokers 👈
Risks of Trading on Pocket Option for Indian Residents
Here’s a breakdown of the key risks:
1. No Investor Protection
Since Pocket Option is not SEBI registered, Indian traders get zero protection in the event of a dispute, fraud, or platform failure.
2. Withdrawal Problems
There have been multiple user complaints online about delayed withdrawals, blocked accounts, and missing funds. Since there’s no Indian legal authority involved, there’s little you can do if the platform denies or delays payouts.
3. Limited Legal Recourse
Even if you hire a lawyer or file a complaint, your case has to be pursued in Marshall Islands jurisdiction, which is impractical and costly for most individuals.
4. Violation of Indian Law
Using an unregistered foreign trading platform for financial gain could be interpreted as breaching FEMA rules, especially if you use Indian bank accounts or payment gateways to fund your trades.
5. Taxation Issues
Profits from binary options trading must still be reported to the Income Tax Department, even if earned through illegal means. But since this income is hard to verify or document through legal channels, you may end up in gray areas of tax compliance, raising the risk of scrutiny.
How to Check if a Broker Is SEBI Registered
If you want to be sure you're using a SEBI-approved broker, follow these steps:
Go to the SEBI website: https://www.sebi.gov.in/
Look for the “Intermediaries” section.
Search by broker name or license number.
Confirm registration status, registration number, and category.
Pocket Option will not appear in this list, confirming its unregistered status.
Are There SEBI Registered Alternatives?
Yes. If you're serious about trading and want to remain on the right side of Indian law, consider using brokers that are SEBI-registered or globally recognized and compliant with Indian regulations.
Popular SEBI-Registered or Compliant Platforms:
Zerodha – India's largest stockbroker, fully SEBI registered.
Upstox – SEBI regulated, offers stocks, futures, options.
Groww – Easy-to-use app with SEBI and NSE/BSE regulation.
Angel One – SEBI registered full-service broker.
Interactive Brokers – Global broker that complies with Indian financial regulations.
ICICI Direct / HDFC Securities – Backed by major Indian banks, SEBI compliant.
These platforms offer a range of instruments, from stocks and mutual funds to derivatives, in a legally sound, SEBI-approved framework.
What Should Indian Traders Do Instead?
Here’s what you can do as a responsible Indian trader:
Stick to SEBI-approved brokers – Use platforms that comply with Indian financial law.
Educate yourself – Learn about legitimate trading instruments: stocks, options, ETFs, mutual funds.
Avoid “too good to be true” platforms – Platforms promising huge profits with no risk are almost always scams.
Understand the legal environment – Read SEBI circulars and RBI guidelines to understand what’s allowed.
Pay your taxes – Ensure that all your income from trading is reported and taxed appropriately.
Conclusion
Pocket Option is not SEBI registered, and using it in India is legally and financially risky. While it may be tempting due to low deposit requirements and flashy features, the absence of regulation, legal protection, and the ban on binary options make it an unwise choice for Indian traders.
Stick with platforms that respect Indian laws and offer real investor protection. In the world of trading, safety and regulation should always come before quick profits.
💥 Trade with Pocket Option now: Open An Account or Visit Brokers 👈
Read more:
