Hi yamarkets,
Retail forex trading, as it’s done in most of the western world, is not legal in India.
What is legal in India is a special, restricted form of forex trading, in certain currency pairs only, handled only by licensed Indian brokers who transact foreign exchange derivative trades on behalf of their Indian retail customers only on registered Indian exchanges.
As far as I know, the 1999 Foreign Exchange Management Act (FEMA) is still the law of the land in India, and the following RBI Notification (based on FEMA), dated 2013, is still current.
THIS NOTIFICATION basically addresses the illegal (offshore) forms of forex trading in India, and the measures to be taken by the government to deal with Indian retail clients who engage in illegal offshore forex trading, and with the banks that facilitate offshore money transfers for those clients.
The Babypips School of Pipsology has been recommended to you. However, be aware that the School teaches retail forex trading as done in the western world, not as done in India. Consequently, much of the mechanics of trading, as described in the School lessons, will not relate to forex trading as it can be legally done in India.
Here are some additional resources –