Reetu | Nov 29, 2023 |
RBI issues Alert List of Unauthorized Forex Trading Platforms
The Reserve Bank of India (RBI) has updated the alert list of unauthorized forex trading platforms and added 19 new entities, including BlackBull, Admiral Market, Easy Markets, Enclave FX, Finowiz Fintech, FX SmartBull, Fx Tray Market, Forex4you, Growing Capital Services, HF Markets, HYCM Capital Markets, JGCFX, PU Prime, Real Gold Capital, TNFX, Ya Markets, Gate Trade, Just Markets, and GoDo FX.
In February 2023, the RBI took a similar action updating its list of unauthorised forex apps and websites, which included 34 forex trading platforms. The updated list consisted of 48 names, including AvaTrade, Pepperstone, FP Markets, Pocket Option, and Quotex which appeared to be unauthorized.
There are currently 75 unauthorised forex trading platforms on the alert list, which include entities that are not authorised to provide forex services under the Foreign Exchange Management Act (FEMA) 1999, nor are they permitted to operate ETP (electronic trading platforms) for forex transactions under the Reserve Bank’s Electronic Trading Platforms Directions, 2018.
The RBI list also contains the names of websites, platforms, and businesses that promote unauthorised ETPs or entities, including those through marketing for unauthorised entities. It should be highlighted that companies not on the alert list should not be presumed to be RBI-authorized.
RBI releases the Alerts List to discourage the dissemination of unauthorised information via platforms, websites, and companies, such as ads for ETPs that profess to offer FX services to domestic investors and traders. The RBI maintains and updates this warning list on a regular basis to advise the public about unauthorised foreign currency trading sites, allowing them to avoid performing FX transactions on such platforms.
Using an unauthorised forex trading platform to conduct foreign currency operations may result in legal consequences. Furthermore, in recent months, there have been a number of cases of foreign currency scams in which fraudsters seduced the general public with the promise of massive returns on investment, only to leave them with massive losses.
The following entities/platforms/websites added to the Alert List of unauthorized forex trading platforms:
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