On February 10, 2023, the Reserve Bank of India (RBI) released its latest "Alert List," identifying several suspected platforms, websites, or entities unauthorized to operate in the forex market under the Foreign Exchange Management Act. These entities are not permitted to function as electronic trading platforms (ETPs) for forex transactions.

The updated list comprises 48 names, including Tickmill, Pocket Option, Pepperstone, FP Markets, and Quotex, among others, which appear to be unauthorized. Some entities on the list are known for promoting unauthorized platforms under the guise of offering training services.

RBI emphasizes that any entity not included in the provided list should not assume authorization to trade or operate electronic trading platforms in forex.

The previous alert list issued by RBI in September 2022 contained 34 such forex trading platforms, indicating a notable increase to 48 within a few months. While the exact reasons for this increase remain unclear, it is believed to be associated with potential threats such as money laundering, hacking, or other illegal activities, prompting RBI to take strict measures.

Adhering to these guidelines will assist forex traders in India in conducting their trading activities efficiently and securely. It is advisable to opt for regulated currency brokers in India due to restrictions imposed by the Securities and Exchange Board of India (SEBI). The updated list of banned forex applications or websites for forex transactions is available on RBI's official website, with the central bank cautioning residents against platforms or entities that appear to encourage ETPs.

Despite being popular in India, online forex trading is subject to strict regulation by the RBI, with financial organizations offering FX trading services required to be registered with the RBI. Regulations include limits on the maximum funds to be traded, the types of currencies permitted for trading, and restrictions on certain transaction types. Nonetheless, online forex trading continues to grow rapidly in India.