RBI Issues List of Warnings: Outlaws These 34 Online Forex Trading Platforms – Times of India
RBI has placed an “alert list” of entities that are neither permitted to trade currencies under the Foreign Exchange Management Act, 1999 (FEMA) nor authorized to operate electronic trading platforms for foreign exchange transactions on its website. In a statement, the central bank said the “list of alerts” is not exhaustive and is based on what was known to RBI at the time the statement was issued. It further warns that an entity not appearing in the “alert list” should not be assumed to be authorized by the RBI. The clearance status of any person/ETP can be determined from the list of Approved Persons and Approved FTEs, which is available on the RBI website.
The RBI reminds that resident persons may only engage in foreign exchange transactions with authorized persons and for permitted purposes, under the terms of FEMA. Although permitted forex trades can be executed electronically, they should only be conducted on ETPs licensed for this purpose by the RBI or on recognized exchanges, namely, National Stock Exchange of India Ltd (NSE), BSE Ltd and Metropolitan Stock Exchange India Ltd.
Members of the public are once again cautioned not to engage in unauthorized exchange ETP transactions or pay/deposit money for such unauthorized transactions. Resident persons who engage in foreign exchange trading for purposes other than those authorized by FEMA or in ETPs not authorized by the RBI will be subject to legal action under FEMA. Here is the full list of the 34 online forex trading platforms banned by RBI.