RBI updates 'Alert List' of entities not authorised to deal in forex trade

Mumbai, February 10, 2023 

The Reserve Bank on Friday updated its 'Alert List' for the public on unauthorised forex trading platforms to include names of entities/platforms/ websites which appear to be promoting such entities.

In September last year, the central bank came out with an 'Alert List' containing the names of 34 entities.

The list now has 48 entries.

"The Alert List has been updated and includes names of entities/platforms/ websites which appear to be promoting unauthorised entities/ETPs, including through advertisements of such unauthorised entities or claiming to be providing training/advisory services," the RBI said, and added the Alert List is not exhaustive.

It further said that an entity not appearing in the Alert List should not assume that it is authorised by the RBI to deal in foreign exchange or can operate electronic trading platforms for forex transactions.

The authorisation status of any person/Electronic Trading Platform (ETP) can be ascertained from the list of authorised persons and authorised ETPs available in the RBI's website.

"Residents are cautioned against entities/platforms/websites which appear to be promoting such unauthorised entities/ETPs, including through advertisements of such unauthorised entities or claiming to be providing training/advisory services (e.g. on social media including video streaming platforms) by providing for demo trading' in simulated environment' and such other indirect means for facilitating and doing forex trading through unauthorised entities," it said.

The RBI also reiterated that residents using any means to remit/deposit funds, directly or indirectly, in INR or in any other currency, for undertaking forex transactions for purposes other than those permitted under the FEMA or on ETPs not authorised by the RBI shall render themselves liable for penal action under the provisions of FEMA.

[Press Trust of India]