The Indian government is really in a dilemma if to regulate the exchanges in india and get additional income tax or ban them completely.
Today again the Finance Ministry issued a warning for investors to not invest in VC as they are not backed by the fiat. Now how uneducated is that. They are missing the whole point of why the bitcoin came into the existence. Source > http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1514568
But on the other hand India's central bank is still doing research on the block-chain and contemplating of issuing a fiat currency. call LakshmiCoin.
Irony of the situation.