RBI releases ‘alert list’ of 34 entities barred from forex trades

After receiving repeated enquiries on the authorisation status of certain electronic trading platforms for foreign exchange transactions, the Reserve Bank of India has released a list of entities that are not authorised to undertake such trades.

The list, which will be referred to as an ‘alert list’, is not exhaustive and is based on the latest information available to the RBI at the time, the central bank said on Wednesday. The list includes entities that are neither authorised to deal in foreign exchange under the Foreign Exchange Management Act, 1999 nor to operate electronic trading platforms for forex transactions.

The central bank’s list has a total of 34 entities. Some of the entities listed are Alpari, AnyFX, Ava Trade, Binomo, e Toro, Exness, Expert Option, FBS, FinFxPro and Forex.com.

OctaFX, one of the entities which has been listed, is an official sponsor of the Delhi Capitals team in the Indian Premier League cricket tournament, reports said.

Websites of some of these platforms show offers for foreign exchange transactions using several cross-currency pairs. Some websites also offer 50 per cent increases in deposits.

“An entity not appearing in the alert list should not be assumed to be authorised by the RBI. The authorisation status of any person/ETP can be ascertained from the list of authorised persons and authorised ETPs, which are already made available in the RBI website,” the central bank said.

The RBI had in February cautioned the public to refrain from undertaking foreign exchange transactions on unauthorised electronic trading platforms or remit and deposit money for the same. The RBI’s communication had come amid numerous reports of individuals being swindled by fraudulent platforms.

The banking regulator reiterated on Wednesday that resident Indians can undertake foreign exchange transactions only with authorised entities and in accordance with the terms of the Foreign Exchange Management Act, 1999.

“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, namely, National Stock Exchange of India Ltd, BSE Ltd and Metropolitan Stock Exchange of India Ltd,” the RBI said.

The central bank warned that individuals undertaking foreign exchange transactions for reasons other than those permitted under the Act or via unauthorised platforms would be liable to face legal action.