Setting up a coinbase like service in India , need suggestions I have read and researched extensively on bitcoin, but I haven't found any service like coinbase that allows a user to buy or sell bitcoins online without having a US bank account. So how can one start an exchange like coinbase for India ? What are the legal obligations and initial startup cost ? Any advise would be welcome.
You should first consult a lawyer in your country and discuss such topics as:


Money laundering laws
Whether Bitcoins are considered a currency, commodity or none of the above
Regulations considering money exchanges


In relationship to the law in your country. It would also be good to asking a legal representative of the government for an official statement in writing on trading Bitcoin and their legal status. This way you would be able to refer back to that decision in case any legal doubts come your way.

Having done that, the procedure would probably be similar to starting any business in India, with a possible addition of any special laws that you'd have to abide by when running an online money exchange.

I should state however, that I am not a legal expert nor do I have any experience with running a business in India. As stated above, consult a lawyer before taking actions.