Work point:Unauthorized forex trading platforms are tricking people, investors are losing money

 The Reserve Bank has advised investors to be cautious while investing in foreign currency. In particular, there is a caution against such unauthorized foreign exchange trading platforms, which have emerged in a big way in recent months and are promising high returns to the people.

RBI has issued a statement saying that a lot of misleading advertisements of unauthorized ETP are coming on social media platforms, search engines, OTT platforms and gaming apps. Unauthorized trading platforms are luring people to make huge profits by personally contacting them and trading in forex. There are complaints of fraud, and those investing in them are losing their hard earned money.

Transactions with Authorized Persons
RBI has said that forex transactions can be done electronically in the country, but only through such electronic trading platforms as are authorized by the RBI for specific purposes. People should only transact in foreign currency with authorized persons. These transactions should also be done only for the purposes prescribed under the Foreign Exchange Management Act, 1999 (FEMA). "RBI cautions individuals not to carry out forex transactions on unauthorized ETPs (Electronic Trading Platforms)," the central bank statement said.

Penalty may have to be paid
The RBI statement said that transactions in foreign currency for purposes other than those specified under FEMA or through unauthorized ETP transactions may attract penalty under the provisions of the Foreign Exchange Act. Is.

Guideline: Forex trading can be done only from RBI authorized trading platform

Who are the Authorized Persons?
These are the people or entities that have been permitted by RBI to deal in Forex. These can be authorized dealers, money changers or units of a foreign bank. Their list is on the RBI website.

Can one transact in forex on an Indian trading portal?
Yes, but only through authorized ETP for the purposes specified under FEMA. Apart from this, forex transactions can also be done through NSE, BSE and Metropolitan Stock Exchange of India.

What are ETPs? Do they have to take permission from RBI?
Electronic trading platforms are electronic systems other than stock exchanges where shares, money market instruments or foreign exchange can be traded. They cannot operate in India without taking permission from RBI.