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Reserve Bank of India bans 13 unauthorised forex trading platforms: Details

Mumbai: The Reserve Bank of India (RBI) has banned 13 unauthorised forex trading platforms. The apex banned these platforms  and included  these in its ‘alert list’ as they were found violating the country’s forex trading regulations.

The platforms identified by the RBI include Ranger Capital, TDFX, Infex, YorkerFX, Growline, Think Markets, Smart Prop Trader, Funded Next, Weltrade, FreshForex, FX Road, DBG Markets, and PlusOne Trade. The RBI emphasised that these platforms  are not permitted to engage in foreign exchange transactions or electronic trading of forex in India. These entities have been operating without the necessary authorisation, which is mandatory for conducting such trades within India’s regulatory framework.

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The RBI’s alert list entails entities which are neither permitted to deal in foreign exchange under the Foreign Exchange Management Act, 1999 (FEMA) nor authorised to operate electronic trading platforms (ETPs) for forex transactions under the Electronic Trading Platforms (Reserve Bank) Directions, 2018.The alert list also includes names of entities that appear to be promoting unauthorised entities/ETPs, such as through advertisements or claims to provide training and advisory services. Importantly, the list is not exhaustive.

The central bank regularly updates its alert list to inform the public about platforms that pose risks due to non-compliance with India’s forex trading rules.

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