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


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 platforms in the country.

In a statement, the (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 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 (FEMA) nor authorised to operate electronic 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, Urban Forex, and XM.

The RBI further said the list is not exhaustive and is 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 central bank said.

While permitted forex transactions can be executed electronically, they should be undertaken only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges — Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange of India Ltd.

“Members of the public are once again cautioned not to undertake forex transactions on unauthorised ETPs or remit/deposit money for such unauthorised transactions,” the RBI said.

The RBI has also provided the list of authorised persons and ETPs on its website.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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