RBI comes out with ‘Alert List’ on forex transactions
Mumbai, September 9
The RBI has come 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.
The RBI said 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 (FEMA) 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. — PTI
A word of caution
- The central bank said any entity not appearing in the list should not be assumed to be authorised by the RBI
- As many as 34 entities, including OctaFX, Alpari, HotForex, and Olymp Trade, have been put under the ‘Alert List’
