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RBI issues ‘Alert List’ on entities not authorised to deal in forex

The Reserve Bank on Wednesday came out with an ‘Alert List’ containing the names of 34 entities, including OctaFX, Alpari, HotForex, and Olymp Trade, that are not authorised to deal in forex and operate electronic trading platforms in the country.

MUMBAI: The Reserve Bank on Wednesday came out with an ‘Alert List’ containing the names of 34 entities, including OctaFX, Alpari, HotForex, and Olymp Trade, that are not authorised to deal in forex and operate electronic trading platforms in the country.

In a statement, the Reserve Bank of India (RBI) said that resident persons can undertake forex transactions only with authorised persons and for permitted purposes, in terms of 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 central bank said it has been receiving references seeking clarification on the authorisation status of some ETPs.

“It has, therefore, been decided to place on the RBI website an ‘Alert List’ of entities which are neither authorised to deal in forex under the Foreign Exchange Management Act, 1999 nor authorised to operate electronic trading platforms for forex transactions,” it said.

The Alert List contains names of entities which are neither authorised to deal in forex nor authorised to ETP for forex transactions under the Electronic Trading Platforms (Reserve Bank) Directions, 2018. Some of the other names in the Alert List include Forex4money, eToro, FXCM, NTS Forex Trading, and XM. The RBI also said the list is not exhaustive and so “an entity not appearing in the list should not be assumed to be authorised by the RBI.”

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