RBI Issues Alert List of
Entities not Authorised to Deal in Forex and to Operate
Electronic Trading Platforms for Forex Transactions
[RBI Press Release/07.09.2022]
The
Reserve Bank of India (RBI), vide press release dated February 03, 2022, had cautioned
the public not to undertake forex transactions on unauthorised
electronic trading platforms (ETPs) or remit/deposit money for unauthorised forex transactions.
The
RBI, however, continues to receive references seeking clarification on the authorisation status of some ETPs. It has, therefore, been decided
to place on the RBI website an “Alert List"
of entities which are neither authorised to deal in forex
under the Foreign Exchange Management Act, 1999 (FEMA) nor authorised
to operate electronic trading platforms for forex transactions. The Alert List is
not exhaustive and is based on what was known to RBI at the time of this Press Release.
An entity not appearing in the Alert List should not be assumed to be authorised by the RBI. The authorisation
status of any person / ETP can be ascertained from the list of authorised persons
and authorised ETPs,
which are already made available in the RBI website.
The
RBI reiterates that resident persons can undertake forex transactions only with
authorised persons and for permitted purposes, in terms
of the FEMA. While permitted forex transactions can be executed electronically,
they should be undertaken only on ETPs authorised for
the purpose by the RBI or on recognised stock exchanges
viz., National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange
of India Ltd.
Members
of the public are once again cautioned not to undertake forex transactions on unauthorised ETPs or remit/deposit money for such unauthorised transactions. Resident persons 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
legal action under the FEMA.