RBI Issues Alert List of Unauthorised Forex Entities

The Reserve Bank of India (RBI) on Friday issued an alert list of entities that are neither authorised to deal in forex under the Foreign Exchange Management Act, 1999, (FEMA) nor authorised to operate electronic trading platforms (ETPs) for forex transactions. The alert list includes names of entities/platforms/websites which appear to be promoting unauthorised entities/ETPs, including through advertisements of such unauthorised entities or claiming to be providing training/advisory services. The RBI cautioned residents against entities/platforms/websites which appear to be promoting such unauthorised entities/ETPs, including through advertisements of such unauthorised entities or claiming to be providing training/advisory services. It further warned that residents using any means to remit/deposit funds, directly or indirectly, in INR or in any other currency, for undertaking forex transactions for purposes other than those permitted under the FEMA or on ETPs not authorised by the RBI shall render themselves liable for penal action under the provisions of FEMA. The list provided by the RBI is not exhaustive and entities not appearing in the list should not be assumed to be authorised by the RBI.