What do you know of the colour trading ban in India? It is illegal in the country though it’s aggressively marketed across many Indian digital platforms for gaining financial success – the shortcut way.
It’s also a little confusing for many, and most aren’t exactly sure whether colour trading is legal in India or just a game like 91 club colour trading is legal in India or not.
We get it, because nowadays, you’ll find the grey area where search ads and influencer endorsements are creating a fad and a confusion for lakhs of Indians.
Short answer: Colour trading is banned in India and it was recently established with legislation in 2025.
What Is Colour Trading? Definition and Mechanism
Colour trading is a money betting prediction game. You find the next colour or the pattern generated on online apps.
The mechanism? Users stake funds to guess the outcome of whether the next colour is green, red, or something similar. These are falsely labelled as contracts but you should KNOW they are misleading. There’s no real asset ownership.
Also Read:
Colour Trading Website
How to Withdraw Money from Colour Trading Apps
Nature of colour trading games, well, it’s betting disguised as trading. The outcomes are chance-based and you should not definitely think of these as an investment.
It’s super risky too, by the way. It’s all chance and most end up with losses. The rules? The apps control them and they aren’t very transparent.
The Legal Status: Is Colour Trading Ban in India or Not?
The question “is colour trading ban in India” has a clear answer: Yes, colour trading is banned in India (2025).
Many of you might wonder whether colour trading is illegal in India or if it operates in a legal grey area.
We want to give you the straightforward reality.
- The Promotion and Regulation of Online Gaming Bill, 2025, was passed in August 2025. It bans all games of chance and betting platforms involving real money – whether skill, chance, or combinations. This ban applies to colour trading apps and websites, making operation, promotion, or financial facilitation criminal acts on Indian soil.
- Colour trading is illegal in India under multiple laws including the Public Gambling Act, 1867, various state anti-betting laws, and the 2025 Online Gaming Bill.
- Such platforms are not registered or even recognised by financial regulators, including your SEBI, RBI, Online Gaming Authority.
- Indian law applies regardless of where a platform is hosted – offshore operators are also blocked and prosecuted.
Also Read: Colour Trading App to Download in 2025
Colour Trading Ban in India Today: Current Status
As of today, the colour trading ban in India is actively enforced. The government continues to block new platforms and prosecute operators.
If you’re searching for “colour trading ban in India today” know that law enforcement agencies are actively shutting down these illegal operations.
Why Colour Trading is Banned in India
Let’s look at the brass tacks. Colour trading is banned in India and you need to know the multiple legal and social factors.
- Lack of Regulation: The downloadable apps are not registered with SEBI, RBI, or the Online Gaming Authority. They are operating illegally. Also, these are evading oversight.
- No Real Asset: You see, these are not like stock, commodity, or forex trading. Colour trading does not involve any asset. It’s based on chance outcomes.
- Violation of Gambling Laws: It falls squarely under the Public Gambling Act, 1867, various state anti-betting laws, and now the 2025 Online Gaming Bill.
- Fraud & Money Laundering: Investigations have exposed rampant fraud, refusal of withdrawals, money laundering, etc.
- Personal & Financial Harm: Addiction, family distress, and even cases of suicide have been reported. This has also led to official action taking by the Ministry of Electronics & IT and health authorities (referencing WHO recognition of “gaming disorder”).
- Consumer Data Risks: Unregulated apps steal/sell personal and banking data, with no recourse for victims.
Historical and Legal Framework Governing Gambling in India
- Historic Ban: India’s Public Gambling Act (1867) and subsequent state laws have long banned games of chance for money.
- Legal Complexity: Patchwork state laws meant some loopholes for online operators – closed definitively by the Online Gaming Bill (2025), which applies nationwide and covers offshore platforms targeting Indians.
- New Regulatory Authority: A National-level Online Gaming Authority will register, categorize, and oversee digital gaming – with separate recognition for safe e-sports and educational games.
- Block and Ban Powers: The government can block illegal sites/apps instantly under the IT Act (Section 69A), as used to shut over 1,500 illegal gaming and betting platforms between 2022 and 2025.
Recent Regulatory Actions and the Colour Trading Ban in India
Government Crackdown (2024–2025)
The colour trading ban in India has been seen some aggressive law enforcement, to say the least.
- Multiple colour trading and betting apps have been recently banned. Social media accounts have been blocked, and even payment routes frozen.
- Enforcement action under TN Gaming Act, Information Technology Act, and GST Act together make sure that there will be criminal and financial penalties for operators and promoters.
- High-profile arrests and prosecutions of scam operators are there.
Advisories and Enforcement
- The Ministry of Information & Broadcasting, Consumer Protection Authority, and Education Ministry have advised against promotion by media, influencers, and teachers.
- Regular blocking of platforms attempting to circumvent the ban.
Consumer Awareness and Protection Measures
So how do you play the games of luck without leaving your finances to chance?
Recognise Red Flags
If you’re still wondering “colour trading ban or not in India,” remember these warning signs of illegal platforms:
- Unrealistic returns promised
- Lack of registration with financial authorities
- Pressured referrals (WhatsApp/Telegram groups)
- Refusal to pay out winnings
- Offshore banking requirements
If Scammed
Immediately report on the National Cyber Crime Portal or call the helpline 1930. Banks, SEBI, RBI, and police will assist in fraud investigation.
Legal Protections
- Consumer Protection Act, 2019: Prohibits misleading or surrogate advertising; celebrities and platforms face liability for promoting betting.
- Privacy: Never share personal or banking details with colour trading sites/apps. Data misuse is common.
Safe and Legal Investment Alternatives in India
Instead of searching “is colour trading legal in India” hoping for a different answer, consider these legitimate options:
- Stock Market (NSE/BSE): Regulated by SEBI – real asset ownership, transparent rules.
- Mutual Funds: Safe, diverse, and professionally managed.
- Commodity Trading (MCX): Legally recognized for metals, energy, agri-products.
- Regulated Forex Trading: RBI-licensed brokers only.
- E-Sports and Social Games: The government encourages participation in skill-building, competitive digital games – with protections against gambling.
The Final Word on Colour Trading Ban in India
Colour trading is illegal, unregulated, and dangerous.
For anyone still searching “is colour trading illegal in India” or “colour trading ban or not in India” – the answer is definitively clear: Yes, colour trading is banned in India.
As per the Promotion and Regulation of Online Gaming Bill, 2025, and older gambling statutes, it is firmly prohibited in India. The government’s actions underscore the real dangers: loss of savings, addiction, fraud, and data theft.
For financial health and peace of mind, you can choose regulated investment options, where transparency, safety, and legal protection are assured.
Frequently Asked Questions (FAQ)
Is colour trading legal in India?
No. Colour trading is illegal in India under the Promotion and Regulation of Online Gaming Bill, 2025, the Public Gambling Act, 1867, and various state laws.
Is 91 Club colour trading legal in India?
No. Despite claims by operators, 91 Club and similar colour trading platforms are banned in India. They operate illegally and users risk losing their money with no legal recourse.
What’s the difference between colour trading and legal trading?
Legal trading is asset-based and regulated by SEBI or RBI; colour trading is pure chance – not investment.
Is colour trading ban in India permanent?
Yes. The colour trading ban in India is permanent and backed by multiple laws. The government continues to strengthen enforcement.
What are the criminal penalties for operators?
Prison up to 5 years, fines up to ₹2 crore, and seizure/blocking of digital property.
Are endorsements by celebrities or influencers legal?
No. They face prosecution for surrogate advertising and misleading claims.
How do I report a colour trading scam?
Use cybercrime.gov.in or helpline 1930. You can also notify SEBI/RBI and consumer courts.
Why do people ask “colour trading is legal in India”?
Misleading advertisements and influencer promotions create confusion. However, colour trading is illegal in India regardless of how it’s marketed.
