How To Check The Authorised List Of Unauthorised Forex Trading Platforms In India

The Reserve Bank of India (RBI) has added eight new businesses to its list of unlicensed FX entities. The RBI stated that these businesses are neither licenced to trade in forex under the Foreign Exchange Management Act of 1999 (FEMA), nor are they authorised to establish electronic trading platforms (ETPs) for forex transactions.

"The Alert List also contains 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 said.

Who is an Authorised Dealer (AD)?

An Authorised Dealer (AD) refers to an individual or entity that has obtained official authorization from the Reserve Bank under Section 10(1) of the Foreign Exchange Management Act (FEMA), 1999, enabling them to engage in foreign exchange or foreign securities trading. Typically, banks are among the entities included in the list of ADs, which can be accessed on the official website of the Reserve Bank at www.rbi.org.in.

How to Check the Authorised List of Unauthorised Forex Trading Platforms?

You can check the list of authorised dealers on https://rbi.org.in/scripts/category.aspx and list of money changes on https://rbi.org.in/Scripts/FFMCList.aspx

What happens if a forex transaction occurs with unauthorised platforms?

Under the FEMA of 1999, you may suffer legal consequences if you undertake FX transactions with unauthorised individuals or on electronic trading platforms. According to the RBI website, "resident persons engaging in forex transactions with unauthorised persons and for purposes other than those permitted by FEMA shall render themselves liable for penal action under the Act."