India Freezes OctaFX’s Bank Account for Illegal FX Trading
In the matter of illegal online forex trading through foreign brokers in accordance with the Foreign Exchange Management Act, the Enforcement Directorate (ED) of India has frozen the bank account balance of OctaFX and its affiliated businesses to the tune of Rs. 21.14 crore (FEMA).
On Wednesday, the Reserve Bank of India published a "warning list" with the names of 34 organizations, including OctaFX, that are not permitted to conduct currency business or run electronic trading platforms in India.
Additionally, HotForex, and Olymp Trade were on the alert list. According to the FEMA, resident persons may only transact in foreign exchange with authorized parties for authorized purposes, the Reserve Bank of India (RBI) stated in a statement.
If residents engage in forex transactions for purposes not authorized by the FEMA, legal action under the FEMA would be accountable. If foreign exchange transactions are carried out on electronic trading platforms (ETPs) that have not been approved by the central bank, legal action would also be responsible.
The central bank reported that it has been getting inquiries on the authorization status of various ETPs.
In a statement, the RBI said, “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."
"Members of the public are once again cautioned not to undertake forex transactions on unauthorised ETPs or remit/deposit money for such unauthorised transactions," the RBI added.
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