According to Indian media Storyboard18, the Ministry of Electronics and Information Technology of India is assessing regulatory actions against offshore forecasting market platforms such as Kalshi and Polymarket, as increasing numbers of Indian people are participating in the forecast market.
The forecast market allows users to invest in the results of real world events, including political election results, sporting events and economic indicators. The Indian authorities consider such platforms to fall within the scope of the existing online game and lottery restrictions in India. The Minister of Information Technology, S. Krishnan, confirmed that the Government had been reviewing the use of such services by users in India. He indicated that measures had been taken in response to specific reported violations. According to sources, platforms such as Kalshi and Polymarket are being inspected for legal compliance in India. Law enforcement action may include restricted access and notification of intermediaries who facilitate user interaction when violations are detected. The use of the Virtual Private Network (VPN) poses operational challenges for law enforcement in India. Users access banned websites via VPN, suspected of circumventing law enforcement restrictions. Indian officials noted that this made monitoring and law enforcement more complex. Blocking one domain name often leads to the creation of another, thus limiting the effectiveness of traditional regulatory tools.
The review coincided with the forecast that the market is becoming more popular among Indian users. Events such as elections and major sporting events have facilitated user participation. The Indian Cricket Super League, in particular, has attracted increasing attention on such platforms because of its large audience and high level of competition.
The authorities indicated that the offshore platforms lacked domestic regulatory oversight and therefore risked. These include lack of consumer protection, unclear dispute resolution mechanisms and the financial risks that users may face. The Indian Capital Market Regulatory Authority, the Securities and Exchange Commission of India (SEBI), also commented on the Opinion Exchange Platform. On 29 April 2025, SEBI issued a bulletin stating that the platforms were neither recognized as stock exchanges nor registered under the securities law. The bulletin states that such contracts may be similar to derivatives, which would be contrary to the Securities Contracts (Regulation) Act 1956. The regulator states: “In such a case, such platforms will face violations. It is recommended that the recognized stock exchange take appropriate action against such violations. Even in such cases, no investor protection mechanism would be available.” The regulator also clarified that if any financial instrument traded on such a platform was eligible for securities under Indian law, then operating without registration would entail regulatory penalties.
