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RBI Updates ‘Alert List’ of Entities Not Authorized to Deal in Forex Trading

The Reserve Bank of India (RBI) has recently updated its ‘Alert List’ to caution the public about unauthorised forex trading platforms. The list, which initially contained 34 entities, has now been expanded to include eight additional names, bringing the total to 56. This move highlights the RBI’s commitment to protecting residents from fraudulent activities related to forex trading. The central bank has emphasized the need for individuals to verify the authorization status of any entity or Electronic Trading Platform (ETP) before engaging in forex transactions.

Background and Purpose of the Alert List:

In September last year, the RBI introduced the ‘Alert List’ to inform residents about unauthorised forex trading platforms. The list aimed to raise awareness and protect individuals from fraudulent entities operating in the forex market. The primary purpose of the Alert List is to provide a reference point for individuals seeking to ascertain the authorization status of a particular entity or ETP.

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Eight New Entities Added to the Alert List:

In its most recent update, the RBI included eight additional names on the Alert List. These entities are QFX Markets, WinTrade, Guru Trade7 Limited, Bric Trade, Rubik Trade, Dream Trade, Mini Trade, and Trust Trade. By expanding the list, the RBI aims to keep the public informed about potential risks associated with dealing with these entities in forex trading.

Importance of Verifying Authorization:

The RBI emphasizes the significance of verifying the authorization status of any person or ETP involved in forex trading. Individuals are encouraged to consult the list of authorized persons and authorized ETPs available on the RBI’s official website. By doing so, they can ensure that they are engaging with legitimate entities and minimizing the risk of falling victim to scams or unregulated activities.

Caution Against Unauthorised Forex Trade:

The RBI reiterates its caution against engaging with entities, platforms, or websites that promote unauthorised forex trade. Residents are advised against remitting or depositing funds, directly or indirectly, in Indian Rupees (INR) or any other currency for forex transactions not permitted under the Foreign Exchange Management Act (FEMA) or through ETPs that lack authorization from the RBI. Failure to comply with these regulations may result in penalties or legal actions as outlined in the provisions of FEMA.

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