Reserve Bank of India has released a list of certain electronic trading platforms conducting foreign exchange transactions. This list (called ‘Alert List’) makes them unauthorised to undertake such trades. It is to be noted that RBI has been receiving repeated enquiries on the authorisation status of these entities.

However, RBI has reported that the list is not exhaustive and is primarily based on the latest information available to the central bank at the time. The list includes entities that are neither authorised to operate electronic trading platforms for forex transactions nor to deal in foreign exchange under the Foreign Exchange Management Act, 1999.

The list includes 34 such entities including Alpari, Binomo, e Toro, Ava Trade, FBS, Exness, Expert Option, AnyFX, FinFxPro and Forex.com. Reportedly, OctaFX is also on the list. The trading company is an official sponsor of the Delhi Capitals team in the Indian Premier League cricket tournament. Apparently, some of these platforms’ websites offer foreign exchange transactions involving several cross-currency pairs. Some websites also offer 50 per cent increases in deposits.

In February, the RBI cautioned the public to refrain from undertaking foreign exchange transactions on unauthorised electronic trading platforms. It had come amid numerous reports of people being swindled by fraudulent platforms.
On Wednesday, the central bank reiterated that resident Indians could undertake foreign exchange transactions only with authorised entities and in accordance with the terms of the Foreign Exchange Management Act, 1999.