Question about Forex market in India

I'm interested in doing forex trading in India, because I think the capital market there is pretty stable and people have good discretionary income. However, my understanding is that RBI strongly regulates the forex market partially because it is afraid of possible currency manipulations by large institutions. And since it is possible to have a very high leverage in this market, people could lose a lot of money without enough prudence, and the government is aware of this, trying to control the forex market to a certain extent. So my question is, how much does the Indian government want to control the forex market, and what kind of rules and regulations regarding the forex trading and the relevant market are put forth by RBI? Are there any available websites or documents pertinent to the foreign exchange market in India I can take a look at?

Also, how many brokerage firms are there in India that offer forex trading services? Reliance Money is the only company I know that runs forex business (as well as other financial businesses) in this area, and I was wondering if there are any other firms that operate in the Indian forex market besides it. If so, are they local? Are other foreign forex trading firms, most of which are based in the United States, planning to prop open the Indian forex market? It seems that they have vast interests in forex markets in Asia, including India, South Korea, and China, but are they able to operate forex businesses in India despite the strong regulations set by RBI? I have tried to form a conjecture regarding the market strategies of foreign forex trading firms on my own, but I'd like to hear what other people here think as well.

Personally, I think it is somewhat inefficient that the Indian government is not letting Rupee to be traded in the forex market. A lot of people will want to buy Rup/major currency pairs! I'd like to know how speculators can come in and affect the value of Rupee in detail. I don't have deep enough understanding in this area.
I'd also like to know some of the important governmental regulations that govern the forex market. I'd like to know the recent developments in the policies of RBI regarding forex transactions, and as of June 2008, how many forex brokerage firms are operating in India and what the limits they face are. Also, I'd like to know how the flow of currency in and out of india is maintained, what is the effect of Forex reserves on Stock market,etc. Please post a reply regarding the aforementioned questions or tell me where i would find answers or information to these questions. Are there any websites or governmental memorandum from which I can have a fairly good idea about recent regulations imposed on the forex market in India?