A liquid Indian exchange is the need of the hour, I believe there is a market for it in India. What surprises me is no one has set one up yet.
Vanilla flavored buying and selling cannot be regulated, but in the event of customers matching their own orders, etc, Extensive regulatory permissions are needed in India.
Also, there is no 100% secure solution as yet. So, it will have to be an Enterprise effort, probably Buttercoin?