The Reserve Bank of India (RBI) has expanded its Alert list to protect investors from unauthorized foreign exchange trading platforms. The central bank has added 13 new platforms to its watchlist of entities that are not permitted to deal in foreign exchange under the Foreign Exchange Management Act, 1999 (FEMA) or authorized to operate electronic trading platforms.

 

The newly added unauthorized platforms include Ranger Capital, TDFX, Inefex, YorkerFX, Growline, Think Markets, Smart Prop Trader, FundedNext, Weltrade, FreshForex, FX Road, DBG Markets, and Plusonetrade. The RBI emphasizes that this list is not exhaustive, and the absence of an entity from the list should not be interpreted as RBI authorization.

 

The alert list specifically identifies entities that lack authorization under FEMA and the Electronic Trading Platforms (Reserve Bank) Directions, 2018. It also includes organizations that promote unauthorized entities through advertisements or by offering training and advisory services.

 

This update comes at a time when the Indian rupee has reached record lows, touching 84.0725 against the US dollar on 14 October 2024. Despite these currency fluctuations, India's foreign exchange reserves have achieved a significant milestone by crossing $700 billion for the first time, making it the fourth country globally to reach this level after China, Japan, and Switzerland.

 

These regulatory measures underscore the importance of trading forex only through legitimate, authorized platforms to protect investors from potential fraud.