RBI Releases 'Alert List' Of 34 Illegal Forex Trading Platforms, Cautions Public

RBI Releases 'Alert List' Of 34 Illegal Forex Trading Platforms, Cautions Public

The Reserve Bank of India (RBI) on Wednesday released a list of 34 entities that are neither authorised to deal in forex under the Foreign Exchange Management Act (FEMA), 1999, nor authorised to operate electronic trading platforms for forex transactions. The RBI further said the list was not exhaustive and was based on what was known to it at the time of publication.

“An entity not appearing in the list should not be assumed to be authorised by the RBI,” the RBI said in a statement.

Earlier this year in February, the RBI cautioned the public not to undertake forex transactions on unauthorised electronic trading platforms (ETPs) or remit or deposit money for such kind of trading.

The trading platforms on the RBI’s Alert List are — Alpari, AnyFX, Ava Trade, Binomo, eToro, Exness, Expert Option, FBS, FinFXPro, Forex.com, Forex4Money, Foxorex, FTMO, FVPTrade, FXPrimus, FXStreet, FXCM, FxNice, FXTM, HotForex, iBell Markets, IC Markets, iFOREX, IG Markets, IQ Option, NTS Forex Trading, OctaFX, OlympTrade, TD Ameritrade, TP Global FX, Trade Sight FX, Urban Forex, XM, and XTB.

The RBI also said that resident persons could undertake forex transactions only with authorised persons and for permitted purposes as per the FEMA.

Resident persons undertaking forex transactions for purposes other than those permitted under the FEMA or on electronic trading platforms (ETPs) not authorised by the RBI shall render themselves liable for legal action under the FEMA. 

The RBI said it has been receiving references seeking clarification on the authorisation status of some ETPs.

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The cenyral bank said while permitted forex transactions could be executed electronically, they should be undertaken only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges — National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange of India Ltd.