Alert list: RBI says 34 entities can't deal in forex, operate trading platforms

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The Reserve Bank of India on September 7 issued a list of 34 entities that are neither authorised to deal in foreign exchange nor authorised to operate electronic trading platforms (ETP) for forex transactions.

The so-called ‘Alert list’ includes entities like Alpari, AnyFx, Ava Trade, Binomo, e Toro, among others, according to a release. Other entities also include Exness, Expert Option, FBS and FinFxPro.

Moneycontrol could not immediately reach out to these entities for reactions on the RBI action.

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The central bank has been cautioning the public not to undertake forex transactions on unauthorised ETPs or remit/deposit money for unauthorised forex transactions.

The ‘Alert list’ issued on September 7 is based on what was known to RBI at the time of publication. An entity not appearing in the list should not be assumed to be authorised by the central bank, the release said.

The RBI, as the banking regulator, also reiterated that resident persons can undertake forex transactions only with authorised persons and for permitted purposes, in terms of the Foreign Exchange Management Act (FEMA).

The main objective of FEMA is to help facilitate external trade and payments in India. The act also aims to help the orderly development and maintenance of India’s foreign exchange market.

Additionally, while permitted forex transactions can be executed electronically, they should be undertaken only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges, the regulator said.

An ETP is defined as any electronic system or facility, other than a recognised stock exchange, that facilitates buying and selling of eligible instruments like securities, money market instruments, foreign exchange and derivatives.

The RBI had already identified 13 authorised ETPs. These include FX-CLEAR, NDS-Call, NDS-OM, CROMS, TREPS, ASTROID, and FX-SWAP among others.