The Reserve Bank of India has issued an updated alert list, which includes further illegal forex trading websites that contravene RBI regulations. This amended list now has 13 new entities, bringing the total to 88. Under the Foreign Exchange Management Act (FEMA) of 1999 or operating electronic trading platforms (ETPs), these platforms are not permitted to engage in foreign exchange trading for forex transactions.
RBI Updates Alert List Of Unauthorized Forex Trading Platforms
The RBI has expanded its list of unauthorised forex trading platforms, warning investors of increasing risks and fraudulent activity
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The newly added entities include Ranger Capital, TDFX, Inefex, YorkerFX, Growline, Think Markets, Smart Prop Trader, FundedNext, Weltrade, FreshForex, FX Road, DBG Markets and Plusonetrade. According to the RBI's Electronic Trading Platforms (Reserve Bank) Directions, 2018, these platforms are not permitted to conduct ETPs or trade Forex. The alert list also includes businesses that promote illegal platforms or pretend to offer Forex trading training and advice services.
The RBI identified deceptive ads for illegal ETPs aimed at Indian citizens, which is a worrying trend. These dishonest adverts appeared on a variety of online sites, including social media, search engines, over-the-top (OTT) platforms and gaming apps. The risks involved with these methods were discussed and the public was warned to remain vigilant against potential scams.
This alert list is an important warning to the public regarding unapproved platforms in the forex trading space. Getting involved with these networks carries major financial risk since several have been flagged for fraudulent activity. Also, the alert list is not all-inclusive, so organizations that are not on it shouldn't be taken for granted RBI authorization. It is advised that investors check the RBI's official list of permitted companies to confirm the permission status of any individual or ETP.
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The central bank has urged prospective investors to be cautious given the increasing number of illegal FX trading websites. It is important for anyone thinking about trading forex to make sure they only interact with approved platforms.
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