The Reserve Bank of India (RBI) has expanded its Alert List by adding 18 internet domains and one mobile app, exposing unauthorised foreign exchange trading platforms providing services to Indian citizens. This latest addition brings the total count of identified unauthorised providers to 75. According to the RBI, these entities lack the authorisation to engage in foreign exchange activities under the Foreign Exchange Management Act (FEMA). Additionally, they cannot operate electronic trading platforms for forex transactions.
While the RBI issues an alert to caution against using such websites in India, it faces limitations in shutting them down as these platforms are registered overseas in countries where their operations are legally sanctioned. Notable examples include Admiral Markets, established in 2001 with its headquarters in Estonia, and BlackBull, affiliated with a company incorporated in New Zealand. Easy Markets, based in Cyprus, is another platform featured on the Alert List, facilitating trading in forex and other instruments.
In an official statement, the Reserve Bank emphasised that the Alert List comprises names of entities, platforms, and websites that appear to promote unauthorised entities, contributing to the regulatory challenges posed by the global nature of online financial services. Despite concerted efforts to alert the public to potential risks, the RBI faces the complex task of regulating platforms that operate beyond its jurisdiction.
Here is the list of unauthorised platforms:
|Growing Capital Service
|TCM Capital Markets
|Real Gold Capital