The central bank’s move follows its February 3 statement cautioning the public against undertaking forex transactions on unauthorised ETPs or remit or 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,” RBI said.
The alert list, comprising 34 entities, is not exhaustive and is based on what is so far known to the central bank. RBI’s statement clarified that an entity not appearing in the alert list should not be assumed to be authorised by it. The authorisation status of any person or ETP can be ascertained from the list of authorised persons and ETPs, which is available on the RBI website.
“The RBI reiterates that resident persons can undertake forex transactions only with authorised persons and for permitted purposes, in terms of Fema,” RBI said, adding, “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 regulator reiterated its caution to members of the public against undertaking forex transactions on unauthorised ETPs. Residents 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 Fema, the central bank said.