The RBI has issued a notice regarding forex apps, including OctaFX, the official trading sponsor of the IPL franchise Delhi Capitals.
The Reserve Bank of India (RBI) issued an alert list of firms engaged in FX transactions on unlawful electronic trading platforms. The RBI has observed that some unlicensed websites entice customers by promising high returns. Users of these banned platforms may potentially face prosecution, according to the RBI.
OctaFX, the official trading sponsor of the Indian Premier League (IPL) team Delhi Capitals, is among the many illegitimate apps.
The RBI went on to say that any organization that does not appear on this list should not be assumed to be authorized by the central bank. Resident persons should conduct forex transactions only with allowed persons and for permitted purposes, according to RBI regulations (Foreign Exchange Management Act, 1999).
“While permitted FX transactions can be carried out electronically, they should only be carried out on ETPs authorized by the RBI or on recognized stock exchanges such as the National Stock Exchange of India Ltd., the BSE Ltd., and the Metropolitan Stock Exchange of India Ltd,” the RBI stated.
Following increasing reports of people falling prey to such entities, the RBI warned people against trading forex on unauthorized platforms in February this year.
Here is a complete list of unlicensed FX trading apps and websites.
NTS Forex Trading
TP Global FX
Trade Sight FX
The RBI said entities undertaking transactions for purposes other than those permitted under the Foreign Exchange Management Act (FEMA) or on electronic trading platforms (ETPs) not authorized by the RBI can face penal action under the Foreign Exchange Act.
While the agency did not name any of these businesses at the time, it got multiple requests for clarification on their authorization, forcing the RBI to issue a warning list. The entities on the alert list are not authorized to deal in foreign exchange under the Foreign Exchange Management Act of 1999 (FEMA), nor are they authorized to establish electronic trading platforms for foreign exchange transactions.