The Reserve bank of India (RBI) on Tuesday (October 22) issued an update to its "Alert List", adding 13 names of unauthorised foreign exchange (forex) trading platforms.
This move by the RBI is to protect the public from engaging with entities that violate RBI regulations under the Foreign Exchange Management Act (FEMA) of 1999.
The New Additions
With the latest addition to the list, it brings the total number of entities on the RBI’s Alert List to 88.
Furthermore, the newly identified platforms are prohibited from conducting foreign exchange trading and operating electronic trading platforms (ETPs).
The newly added 13 names in the list include:
1 Ranger Capital
2 TDFX
3 Inefex
4 YorkerFX
5 Growline
6 Think Markets
7 Smart Prop Trader
8 FundedNext
9 Weltrade
10 FreshForex
11 FX Road
12 DBG Markets
13 Plusonetrade
What Does This Mean for Investors?
The RBI’s alert list is a warning to the public about platforms that are not authorised to operate in the forex trading space.
In addition to it, engaging with these platforms can lead to significant amount of financial losses, as many have been reported for fraudulent activities.
Furthermore in the recent year, the RBI has also raised alarms over the growing presence of unauthorised forex trading platforms and the deceptive practices they employ.
Reserve Bank of India | Representative Image
Many of these platforms lure unsuspecting individuals with promises of high returns on investments.
Introduced in 2018, these RBI's guidelines govern the approval process for electronic trading platforms handling financial market instruments. As per this, only ETPs recognised under these regulations can facilitate transactions for various financial instruments, including forex.
