Indian Authorities Freeze Zara FX Accounts in Forex Probe

India's Enforcement Directorate (ED) has conducted raids on multiple locations linked to Zara FX - now operating under the name Zarvista Capital Markets - and frozen bank accounts containing approximately INR 39 million (USD 445,000), alleging the broker was operating an unlicensed forex trading scheme within the country.

The ED said the coordinated operation took place last Thursday, targeting four premises in Kerala, where mobile devices and a hard disk were seized. According to its press release, preliminary findings suggest the broker was using unregulated online platforms to collect deposits through a network of mule accounts. Investors were allegedly enticed with promises of unusually high returns, with the collected funds routed through multiple bank and virtual accounts to obscure their source. Authorities allege some of the funds were used for speculative forex trading abroad, while others were diverted for personal gain.

A Zarvista spokesperson rejected the allegations, stating, "We have no offices, subsidiaries, or operational presence in India. We do not market our services to Indian residents, nor do we conduct regulated business activities within the country." The company added that its Cyprus entity - cited in the ED's statement - functions solely as an administrative support center handling accounting, finance, and compliance coordination, and is not involved in client onboarding or trading operations.

The investigation also includes Zarvista CEO Jamsheer TV and unnamed others. The company is registered in Cyprus but not regulated there, instead holding offshore licences from Mauritius and Comoros. It rebranded from Zara FX in 2024, citing alignment with global objectives, just months after securing $2 million in Series A funding.

The ED's actions come amid a broader crackdown on offshore forex brokers operating without approval in India. Less than a month ago, Exness stopped onboarding new Indian clients, and earlier, the regulator seized $34.5 million in assets tied to Octa FX's Indian operations, which were alleged to have generated $93.4 million in unlicensed trading revenues.