The list includes Alpari, AnyFX, Ava Trade, Binomo, eToro, Exness, among others; RBI says people can conduct forex transactions only through individuals who are authorized or ETPs
After receiving numerous inquiries regarding the authorisation status of some E-Trade Platforms (ETPs) and the Reserve Bank of India (RBI) has issued an alert list of companies that cannot be authorized to transact in forex as per the Foreign Exchange Management Act, 1999 (FEMA) or authorized to run online trading platforms (ETP) to conduct forex transactions.
The “alert list” isn’t exhaustive, according to the RBI in a statement, adding that it’s based on the information available to the RBI until September 7 2022.
The central bank’s list for these entities that aren’t authorized include Alpari, AnyFX, Ava Trade, Binomo, eToro, Exness, Expert Option, FBS, FinFxPro, Forex.com, Forex4money, Foxorex, FTMO, FVP Trade, FXPrimus, FXStreet, FXCM, FxNice, FXTM, HotForex, ibell Markets, IC markets, iFOREX, IG Markets, IQ Option, NTS Forex Trading, OctaFX, Olymp Trade, TD Ameritrade, TP Global FX, Trade Sight FX, Urban Forex, XM and XTB.
In addition, the the London-based OctaFX was a London-based company, which the RBI declares is not authorized to conduct business with forex is also among the patrons of the Delhi Capitals team in the Indian Premier League (IPL) this year, as per media reports. The advertisements of these platforms are also seen on social media platforms like YouTube.
In addition it is important to note that the RBI is adamant that any entity that is not listed on the “alert list” cannot be deemed to be authorized from the RBI. The RBI states that individuals can conduct trading in forex only when they are “authorised persons and for permitted purposes” in accordance with FEMA regulations.
The document also states that transactions in forex are only possible online via RBI-approved ETPs or on recognized stocks exchanges i.e. BSE Ltd., the National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange of India Ltd.
Central bank officials have advised it is not recommended to conduct forex transactions using unauthorised ETPs or transfer or deposit money to facilitate such transactions. People who engage illicit forex transactions may be held accountable for legal actions pursuant to the FEMA.
The RBI in February of this year first noticed these ETPs that were not authorized were placing ads advertising forex trading services via social networking platforms such as search engines, Over The Top (OTT) platforms, and gaming applications. In some cases, says the RBI these ETPs-enticing agents personally call gullible customers to offer investments or trading in forex and lure them with assurances that they will provide “exorbitant returns”. A lot of people have suffered losses when trading on the authorized platforms according to the RBI states.
The list of authorized ETPs includes FX-CLEAR, NDS Call, TREPS, NDS-OM, CROMS ASTROID, FX-SWAP, and TREPS All of them are managed via Clearcorp Dealing Systems (India) Ltd. Other ETPs include i-Stream (operated through ICAP IL Indian Pvt Ltd) as well as TEX/SEP, 360TGTX (operated through Three Sixty Trading Networks (India) Pvt. Ltd), FXall and Matching (operated by Refinitiv India Transaction Services Pvt. Ltd.) as well as BTBS (operated through Bloomberg Tradebook Singapore Pte Ltd.).
