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MUMBAI: The Reserve Bank of India (RBI) on Wednesday issued a list of 34 entities operating in the country that are neither authorised to deal in forex under the Foreign Exchange Management Act (FEMA) nor authorised to operate electronic trading platforms for forex transactions. The move is aimed at curbing forex trading by Indians through unregulated platforms.
Indians were using the liberalised remittance scheme (LRS) route to trade through these platforms, and exposing banking & financial systems to higher risks. As a result, the central bank decided to act, industry players said. The RBI’s list has some known names, like Alpari, Forex. com, iForex and TD Ameritrade. The central bank said that the list was not exhaustive and there could be more such entities that are offering the same kind of service.
“An entity not appearing in the list should not be assumed to be authorised by the RBI,” it said. The authorisation status of any person/ electronic trading platform (ETP) can be ascertained from the list of such authorised entities available on its website, it added.
“Resident persons 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 legal action under the FEMA,” the release said.
Indians were using the liberalised remittance scheme (LRS) route to trade through these platforms, and exposing banking & financial systems to higher risks. As a result, the central bank decided to act, industry players said. The RBI’s list has some known names, like Alpari, Forex. com, iForex and TD Ameritrade. The central bank said that the list was not exhaustive and there could be more such entities that are offering the same kind of service.
“An entity not appearing in the list should not be assumed to be authorised by the RBI,” it said. The authorisation status of any person/ electronic trading platform (ETP) can be ascertained from the list of such authorised entities available on its website, it added.
“Resident persons 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 legal action under the FEMA,” the release said.
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