RBI releases new alert list with regard to forex transactions

8 Sep 2022 , 08:30 AM

On Wednesday, the Reserve Bank of India (RBI) announced that it would publish an “alert list” of companies that are neither permitted to conduct foreign exchange business under the Foreign Exchange Management Act, 1999 (FEMA), nor permitted to run electronic trading platforms for such business.

In February 2022, the RBI released a statement cautioning the public against engaging in currency trading on unauthorized electronic trading platforms (ETPs) or sending or depositing funds for such trading.

Since it keeps getting inquiries about the authorization status of several ETPs, the central bank has chosen to publish this list of suppliers it has advised against. But it’s not an exhaustive list of businesses.

The Alert List includes but is not limited to:

1. Alpari
2. Binomo
3. eToro
4. Exness
5. Expert Option
6. Forex.com
7. Forex4money
8. Foxorex
9. FTMO
10. IQ Option
11. OctaFX
12. Olymp Trade
13. TD Ameritrade
14. Trade Sight FX

The central bank also reaffirmed that residents may only engage in foreign exchange with authorized parties and for authorized uses. While authorized currency transactions may be carried out electronically, only ETPs approved for this purpose by the RBI or recognized stock exchanges, such as the National Stock Exchange of India Ltd., BSE Ltd., and Metropolitan Stock Exchange of India Ltd., should be used.

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