After receiving several queries on the authorisation status of certain electronic trading platforms (ETPs), the Reserve Bank of India (RBI) has released an alert list of entities that are neither authorised to deal in forex under the Foreign Exchange Management Act, 1999 (FEMA), nor authorised to operate electronic trading platforms (ETP) for forex transactions.
The 'alert list' is not exhaustive, says the RBI, adding that it is based on what was known to the RBI till September 7, 2022.
The central bank's list of such unauthorised entities includes 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 and XTB.
Notably, London-based OctaFX, which the RBI says is not authorised to deal in forex, was also one of the official sponsors of the Delhi Capitals team in the Indian Premier League (IPL) this year, say media reports. Ads of many such platforms can also often be seen on popular social media platforms including YouTube.
Also, the RBI has clarified that an entity not appearing in the 'alert list' can't be assumed to be authorised by the RBI. The RBI says people can undertake forex transactions only with "authorised persons and for permitted purposes", in accordance with the FEMA rules.
It adds that forex transactions can be done online only on the RBI-authorised ETPs or on recognised stock exchanges i.e. the National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange of India Ltd.
