The Reserve Bank of India(RBI) has cautioned the public not to undertake forex transactions on unauthorised Electronic Trading Platforms (ETPs) or remit/deposit money for any unauthorised transactions. Resident persons can undertake forex transactions only with authorised persons and for permitted purposes, in terms of the Foreign Exchange Management Act, 1999 (FEMA).
The step has been taken keeping in view the reports of frauds committed by such unauthorised ETPs / portals and many residents losing money through such trading / schemes.
However, permitted forex transactions can be executed electronically, only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges as per the terms and conditions specified by the RBI from time to time.
Further, it has also clarified that 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 penal action under the FEMA.