The Reserve Bank of India (RBI) has issued a warning against applications and platforms that are involved in illegal foreign exchange (forex) transactions and released an ‘Alert List’ consisting of names of 34 firms that are operating electronic trading platforms (ETPs) without due clearance from the central bank.
RBI has also asked Indian nationals to only deal in forex transactions with authorised entities and only for purposes permitted in FEMA terms.
The central bank also issued a stern warning to the people trading in forex transactions that are for purposes other than the ones permitted under the FEMA or on electronic trading platforms (ETPs), and said anyone involved in such activities is liable for legal action under FEMA.
RBI’s ‘Alert List’ contains the names of 34 entitites that aren’t authorised to deal in forex and operate electronic trading platforms in the country, and the list includes names like OctaFX, Alpari, HotForex, and Olymp Trade.
अब #CurrencyTrading पर @RBI की सख्ती#ForexTrading फ्रॉड पर RBI की सख्ती
गैरकानूनी ट्रेडिंग प्लेटफॉर्म पर चेतावनी
RBI ने जारी की 34 प्लेटफॉर्म की लिस्ट
बड़े मुनाफे का लालच देकर फंसाने का सिलसिला
पूरी खबर जानिए एकता सुरी से#RBI | @Ektaexplores pic.twitter.com/KO3qqs8APG
— Zee Business (@ZeeBusiness) September 7, 2022
The central bank said it has been seeking explanations on the authorisation status of some ETPs. In its statement, RBI further stated, “It has, thus, been decided to place on the RBI website an’ Alert List’ of realities which are neither authorised to deal in forex under the Foreign Exchange Management Act, 1999( FEMA) nor authorised to operate electronic trading platforms for forex deals.”
Entities not authorised by RBI to deal in forex trading: Full List
The other entities that feature on the ‘Alert List’ of realities which are neither authorised to deal in forex nor authorised to ETP for forex deals include Alpari, AnyFX, Ava Trade, Binomo, eToro, Exness, Expert Option, FBS, FinFxPro, Forex.com, Forex4money, Foxorex, FTMO, FVP Trade, FXPrimus, FXStreet, FXCM, FxNice, FXTM, HotForex, ibell Markets, IC Markets, iFOREX, IG Markets, IQ Option, NTS Forex Trading, OctaFX, Olymp Trade, TD Ameritrade, TP Global FX, Trade Sight FX, Urban Forex, XM, XTB.
The RBI added that this list isn’t total, and “an reality not appearing in the list shouldn’t be assumed to be authorised by the RBI.”
RBI issues Alert List of entities not authorised to deal in forex and to operate electronic trading platforms for forex transactionshttps://t.co/onnbohXUug
— ReserveBankOfIndia (@RBI) September 7, 2022
What is allowed?
Permitted forex deals can be executed electronically.
These deals should be accepted only on ETPs authorised for the purpose by the RBI.
Transactions can also be done on recognised stock exchanges — National Stock Exchange of India Ltd (NSE), BSE Ltd and Metropolitan Stock Exchange of India Ltd.