The Reserve Bank on Wednesday issued an ‘alert list’ containing the names of 34 entities, including OctaFX, Alpari, HotForex and Olymp Trade, that are not authorized to deal in forex and operate electronic trading platforms in the country.
In a statement, the Reserve Bank of India (RBI) said resident persons can conduct forex transactions only with authorized persons and for permitted purposes, in terms of FEMA.
Residents who conduct forex transactions for purposes other than permitted under FEMA or on Electronic Trading Platforms (ETPs) not authorized by the Reserve Bank of India (RBI) should be responsible for taking legal action under FEMA. Authorization status for some ETPs.
“Therefore, it has been decided to place an ‘alert list’ on the RBI website for entities not authorized to deal in forex under the Foreign Exchange Management Act of 1999 (FEMA) and not authorized to operate electronic trading platforms for forex transactions,” he said.
The alert list contains the names of entities that are not authorized to deal in forex and not authorized to ETP for forex transactions under the Electronic Trading Platforms (Reserve Bank) Directive, 2018.
Some of the other names on the alert list include Forex4money, eToro, FXCM, NTS Forex Trading, Urban Forex, and XM.
The Reserve Bank of India also said the list was not exhaustive and was based on what it knew at the time of publication.
“It should not be assumed that an entity not on the list is authorized by the Reserve Bank of India,” the central bank said.
While permitted forex transactions can be executed electronically, they should only be made on ETPs authorized for this purpose by the RBI or on recognized exchanges – National Stock Exchange of India Ltd. and BSE Ltd. and the Metropolitan Stock Exchange of India Ltd.
“Members of the public are again cautioned against conducting forex transactions on unauthorized ETPs or transfer/depositing funds for such unauthorized transactions,” the Reserve Bank of India said.
The RBI also provided a list of authorized persons and ETPs on its website. PTI NKD CS MR
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