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Is Colour Trading Legal in India for Real Money Users?

Is Colour Trading Legal in India

Colour Trading is a strategy in online trading. It works by guessing how certain colour values will change in markets. To know if Colour Trading is legal, you have to think about a few things, these include the kind of trading, where the user’s the laws that apply to the user, and how the trading is done.

This article will explain how Colour Trading works. It will also go through the process and the laws that apply to it in India. When checking if Colour Trading is legal, consider these points:

  • The type of trading involved
  • The user’s location
  • The applicable jurisdiction
  • The method used to trade

Colour Trading is a strategy that people use in trading. Colour Trading involves predicting colour value changes. In India, Colour Trading is subject to laws. These laws depend on the type of trading and where the user is.

Understanding How Colour Trading Platforms Work

The Colour Trading process works in a way that’s not very sure, it looks at things like how popular certain colours are and how much people want them in areas like fashion and technology. The Colour Trading process can give people a chance to make money. People who buy and sell colours need to know about the possible problems that can happen. Since there are no rules for the Colour Trading process, people who buy and sell colours need to be careful.

To keep themselves safe, people who do Colour Trading should learn about the Consumer Protection Laws in India. The Consumer Protection Laws in India help protect people from things like cheating, fake deals and false advertisements, which are very important when using online Colour Trading platforms, where it is not always easy to know what is going on.

Is Colour Trading Legal in India?

Real Money Trading in gaming is when people sell things they got in a game, like items or money, for money outside of the game. This includes:

  • Selling items
  • Selling game money
  • Selling characters
  • Selling things you find in the game

When you do this, you have to think about the market and make a plan. It is not like playing a game for fun, where you do not know what will happen.

People do this in India. It is not allowed. They call it trading, but it is really just a form of online gambling. It is not trading, and it is not legal.

Current Legal Status in Different States

The law about gambling is different in each state in India. So what is allowed in one place is not allowed in another place.

AspectLegal Status
Federal levelNo federal law prohibits online betting, but most gambling is prohibited under the Public Gambling Act, 1867 wikipedia+1
MaharashtraOnline gambling is a banned offence under the “Bombay Wager Act” 
Andhra Pradesh, Assam, Odisha, TelanganaEnacted strict prohibitions on all gambling forms, including online real-money gaming and games of skill 
Goa, SikkimLegalised licensed casinos for tourism revenue
Kerala, Maharashtra, West BengalPermit lotteries and horse-race betting
13 states totalRun government-operated lotteries 

Laws Related to Online Betting and Gaming

Public Gambling Act, 1867 (centrally governed)

  • Prohibits betting and gambling in parts of India.
  • Bans gaming houses and common gaming houses.
  • Games that are mostly based on chance are not allowed. Games that require skill are okay.

Promotion and Regulation of Online Gaming Act, 2025

  • Online money games like colour prediction, colour trading and betting apps are not allowed.
  • E-sports and games that require skill are. Promoted.
  • If you break the rules you could go to jail for up to 3 years. Pay a fine of up to ₹1 crore or both.
  • People who play colour prediction or trading games could face consequences for regular offences.

State-Specific Laws

  • Different states in India have their laws about gambling and betting with some exceptions.
  • There are 28 states that regulate gambling and betting.
  • Colour trading is considered a scam. Can be risky, with no guarantee of making money.

Why Legality Depends on Platform Operations?

The legality of colour trading depends on how platforms work. In India, gambling laws make a difference between games of chance, which are considered gambling and games of skill which are legal.

Here’s what makes colour trading platforms operate outside the legal framework:

AspectLegal Trading PlatformsColour Trading Platforms
Regulatory oversightRegulated by SEBI, RBI Not regulated by SEBI or any financial authority 
Assets involvedInvolve regulated financial assets with ownership No regulated assets, no ownership, no exchange mechanism
Market structureHave recognized market structure No recognized market structure 
Outcome determinationBased on market analysis/skillRandom, time-based outcomes 
User protectionLegal investment protections, dispute resolution No protections; complaints, refunds difficult

Risks Users Should Know Before Using Colour Trading Websites

Colour trading is a scam. When you use these platforms, you risk losing all your money. Your data might get. You could have problems with your account that you can’t fix.

You could lose all your money. Trading based on predictions is like gambling. If your predictions are wrong, you could lose everything. Colour trading platforms have some issues. They promise you will get returns. That is not true, as there is no guarantee that you will earn money. They might delay your withdrawals and freeze your account after you put money in. Colour trading is a trick to take your money.

Financial Risks

Some risks with colour trading platforms include:

1. They can freeze your account without warning. This means you can’t get to the money you put in.

2. They might change the colours or price movements to make you trade and make money from you.

3. Some platforms might even disappear with all your money.

Unlike betting on the IPL, colour trading has no protection. SEBI and RBI do not consider it a legitimate investment.

Fake Apps and Scam Platforms

  • These platforms do not have apps on the Google Play Store. They are like gambling apps.
  • Some apps might pretend to be connected to companies, but that is not true.
  • The platforms do not have registration with SEBI or RBI. They are not legal.
  • They might pressure you to get others to join, like a pyramid scheme.
  • Some apps that are used for colour trading might be hacked.
  • They might be distributed outside stores with code that has been changed.
  • One example of a platform that’s not legitimate is BDG Colour Trading. It works illegally. Could cause you to lose a lot of money.

Scammers often use these apps to trick people into giving them money.

Data and Payment Security Concerns

When you use these platforms, they might collect your banking details. This can lead to people trying to steal from you.

  • Some apps might ask for access to your contacts, gallery, SMS, camera and system settings.
  • The apps might have code that captures what you type, including your passwords and banking information.
  • Some apps might ask you to “authenticate” through your accounts. They are just trying to steal your logins and passwords.
  • The apps might also try to get your bank card details and just take your money.
  • They can install code on your device that lets them control it or send you a lot of spam.

The apps might ask for your documents like your phone number, bank details and payment information.

How to Identify a Safer Colour Trading Platform

There is no colour trading platform that’s really safe. In fact colour trading is not allowed in India no matter what any platform says and all these platforms can cause big financial and security problems.

Secure Payment Options

If you want to know the difference between online gaming platforms and fake ones here is what research says about what makes a platform seem “safe”:

  • They have ways to pay: like UPI, Paytm, IMPS or NetBanking
  • They work well all the time: they say they have UPI, IMPS and NetBanking
  • You can get your money fast: some say you can get your money in a few hours with UPI like on 96 bet
  • You can get your money out in ways: they have more than one way to withdraw money

But even if a platform has all these payment options colour trading is still not protected by any rules. The SEBI and RBI do not think it is a real investment and you might not get your money back.

Verified APK Downloads

96.com platforms do things like this:

  • They have ways to get their apps and you can download 96 apk from the official website
  • They warn you about sources: do not download from Telegram links, strange websites or direct APK downloads from people you do not know
  • They update their apps: check when the app was last updated and who made it
  • They are not on Google Play: most gambling apps are not on Google Play because they go against the rules

Colour trading apps are often used by people to trick innocent people and you cannot find them on the Google Play Store because they are, for gambling. When you download APKs from sources you do not know you do not really know what you are getting. Colour trading is not safe and colour trading platforms are not trustworthy.

Trusted Platforms Like 96 App

96 casino is a betting platform that people over the world can use, and it is especially for Indian users. It has a license from the Curaçao Gaming Authority and has been operating since 2022. The 96.com platform is really good for people who use cryptocurrency. It has a lot of sports that you can bet on, including cricket. When you join 96.com, for a time, you get a really good welcome bonus.

People have given 96.com a rating of 4.6 out of 5 on Trustpilot. They say that 96.com is totally reliable and trustworthy when it comes to moving money. 96.Com uses codes to keep your information safe and it has a lot of ways for you to pay, like Net banking, UPI, cryptocurrency and wallets. This makes it a safe place for people to play.

96.com has an online casino and a complete sports betting system. You can play games, like Teen Patti, Blackjack, slots and bet on cricket. If you are looking for a place to play 96 game bet smoothly and have fun in a safe way, then the official 96 app is the way to go. This app is a platform that has everything you need.

Colour Trading Legal Status Comparison Table

Here’s how colour trading compares to other online activities in India:

Activity TypeLegal Risk LevelReal Money InvolvementGovernment Regulation Status
Colour TradingHigh Risk (Banned) – Explicitly banned under Promotion and Regulation of Online Gaming Act, 2025 High Risk – No regulated assets, outcomes random/time-based, complete loss possible Not Regulated – No SEBI/RBI registration, not recognised by any government authority 
IPL BettingMedium-High Risk – Legal grey zone in most states, state-specific laws varyMedium Risk – Regulated betting platforms exist, but user protections limited Partially Regulated – Some licensed platforms, but most operate in grey area 
Fantasy Sports (Dream11)Low Risk (Legal) – Recognised as skill-based game under gaming laws Low Risk – Regulated platforms with consumer protections Regulated – Licensed platforms with proper oversight 
Stock TradingNo Risk (Legal) – Fully legal investment activityLow Risk – Regulated assets with SEBI oversight Fully Regulated – SEBI and RBI regulated

Things to Consider Before Playing Colour Trading Games

Under the Promotion and Regulation of Online Gaming Act 2025 you can get into trouble. This can even lead to imprisonment for up to 3 years or fines of up to ₹1 crore. The thing is, these platforms are not regulated by SEBI or RBI. So if something goes wrong you have no protection.

Responsible Spending Habits

The best thing to do is to stay from it. Colour trading is like gambling. You can lose all your money if your predictions are wrong. These platforms can freeze your account. Delay in giving you your money back after you deposit it. You cannot do anything about it. It is designed to trick you into giving them your money. It can be addictive. Instead you should focus on fantasy sports platforms like Dream11. They operate legally under skill-based gaming laws.

Reading Platform Terms Carefully

The terms and conditions of these platforms often have conditions that’re not good for you. Their withdrawal policies can make it impossible for you to get your money back.. Their account freezing conditions are not clear. They are also in favour of the platform, not you. The important thing is that there is no way to resolve disputes or take legal action. Their terms may also allow them to share your data with companies, which can put your banking information at risk. Remember, these platforms are not regulated so their terms will not protect you.

Understanding Local State Rules

According to the Public Gambling Act, 1867 gambling is prohibited, except for lotteries and horse racing. Colour trading is considered gambling so it is illegal in your state. Twenty-eight states have their own rules for gambling, but most of them follow the central government’s laws, which prohibit gambling. So, colour trading is illegal, and you should stay away from it.

FAQs

Is colour trading completely legal in India?

No. Colour trading is not allowed in India. It is clearly against the law under the Promotion and Regulation of Online Gaming Act 2025. If you do it, you could go to jail for up to 3 years. Have to pay a fine of up to ₹1 crore.

Can I use real money on colour trading websites?

Yes. You should not do it. Real money is involved in colour trading. The platforms are not controlled by SEBI or RBI. This means there are no laws to protect you and you could lose all your money with no way to get it back.

Are colour trading apps banned in India?

Yes colour trading apps are not allowed in India. They are clearly not permitted under the Promotion and Regulation of Online Gaming Act 2025. You will not find these apps on the Google Play Store because they are like gambling apps.

Is colour trading considered gambling?

Yes colour trading is like gambling. The results are random, based on time not on how skilled you are or what you know about the market. This is why colour trading is considered betting, not trading, under the law.

How can users stay safe while using colour trading platforms?

The best thing to do is to stay away from colour trading platforms altogether. Instead, use platforms that’re legal like the 96 app, which follow the laws, for games that require skill and have proper rules to protect users. Colour trading is not an idea so it is better to avoid colour trading and use safe platforms.

author avatar
Lucas Brown
With over 6 years of experience in evaluating mobile gaming platforms, Lucas Brown is a digital product reviewer and app usability expert. His write ups simplify complex user journeys and are crafted for both SEO visibility and genuine reader value, making him a reliable tech voice on 96.com. Lucas is a graduate in Computer Science from the University of Glasgow. As of now focuses on testing casino games and reviewing apps like the 96in app, 96.com platform casino, slot games and APKs.

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