Reserve Bank of India the apex authority, declared 34 forex trading platforms as illegal.
CS Mayank Jha
CS | Corporate Advisory | Audit | PoSH & Public Policies | Due Diligence | SEBI | FEMA
RBI has placed an 'Alert List' of entities which are neither authorised to deal in forex under the Foreign Exchange Management Act, 1999 (FEMA) nor authorised to operate electronic trading platforms for forex transactions on its website.
The RBI reiterates that resident persons can undertake forex transactions only with authorised persons and for permitted purposes, in terms of the FEMA. While approved forex transactions can be executed electronically, they should be undertaken only on ETPs (Electronic Trading Platforms) authorised for the purpose by the RBI or on recognised stock exchanges viz., National Stock Exchange of India Ltd (NSE), BSE Ltd and Metropolitan Stock Exchange of India Ltd.
The central bank's list of unauthorised ETPs includes Binomo, Olymp Trade, Octa FX and others…
The central bank has said people should not undertake forex transactions on unauthorised ETPs or remit or deposit money for such transactions. Those indulging in illegal forex transactions can be liable for legal action under FEMA.
Qualified Company Secretary @ 21| Corporate Governance | Transaction Advisory | SEBI Regulations
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