By Lal Singh Many Indian Traders are looking for online Forex Trading Platforms, they usually come across OctaFX and wonder if it’s safe or legal to use the platform. Recently Indian Government have made the platform’s legal status quite clear.
Rules for Forex Trading in India:
RBI and SEBI are in charge of Forex trading in India. Indian Traders can only trade some specific INR based currency pairs through brokers and exchanges that are registered with SEBI and authorized by the Indian government. Indian rules don’t permit trading on offshore sites that offer global currency pairs.
What is the legal status of OctaFX in India?
OctaFX is an offshore Forex broker but it’s not authorized by SEBI and RBI to offer Forex trading services in India. The Indian branch of OctaFX has been penalized by SEBI for running a Forex trading platform that wasn’t regulated. The company discontinued its registration and was banned from trading in Indian securities as part of a settlement. This demonstrated that it had not followed the Indian rules and regulations.
What This Means for Indian Traders:
There is no specific law which says OctaFX is “banned,” but it is clear that it is not allowed in India. Those Indian traders who were using the paltform or promoting this types of platforms are at risk, because they might not be protected by the regulations, have little legal options, and may break FEMA rules.
Conclusion:
According to the current law, OctaFX is not permitted to do business in India & Indian Traders who want to be sure of the law and protect their money should only trade through SEBI authorized brokers and in INR based currency pairs only that are allowed. Offshore platforms like OctaFX may look simple & easy to use but they come with many legal and financial risks that you should think about carefully before investing your money in it.