The Reserve Bank of India (RBI) released an ‘alert list’, asking people not to transact with certain entities as they are not authorised to deal in forex.
The apex bank said that resident persons can undertake forex transactions only with authorised persons and for permitted purposes, in terms of the Foreign Exchange Management Act, 1999 (FEMA), it said in a statement.
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, the central bank said
“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,” the central bank added.
It issued a note cautioning 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, it said.
An entity not appearing in the Alert List should not be assumed to be authorised by the RBI. The au-thorisation status of any person / ETP can be ascertained from the list of authorised persons and au-thorised ETPs, which are already made available in the RBI website, it added.
