“The said app (OctaFX) and its website have not been authorized by the RBI (Reserve Bank of India) to deal in forex trading. The conduct and operations of forex trading (not being conducted on the recognized stock exchange) is illegal, and also violates FEMA Regulations”, added ED.
Continuing on its spree of crackdown, the enforcement directorate (ED) has now frozen assets INR 21.14 Cr belonging to online forex trading app OctaFX. This comes after agency sleuths raided multiple premises belonging to the Indian arm of the company over concerns related to alleged violation of Foreign Exchange Management Act (FEMA) norms.
“ED has freezed account balance to the tune of INR 21.14 Cr of M/s OctaFX and related entities in various bank accounts. Earlier, ED had conducted searches at various premises of M/s OctaFX India Private Ltd. and related concerns under the provisions of FEMA in the case of Illegal online forex trading through international brokers namely OctaFX trading app and website”, said the agency in a statement. Further probe into the matter is currently underway.
The investigation into the firm revealed that funds collected from various users were channelized through various dummy entities. Subsequently, the amount was then purportedly layered through multiple domestic accounts to finally undertake cross-border transactions.
“The said app (OctaFX) and its website have not been authorized by the RBI (Reserve Bank of India) to deal in forex trading. The conduct and operations of forex trading (not being conducted on the recognized stock exchange) is illegal, and also violates FEMA Regulations”, added ED.
This comes days after RBI issued a public advisory warning the public against undertaking forex transactions on unauthorized electronic trading platforms (ETPs). It also issued an ‘Alert List’ that included entities not authorized to deal in forex transactions. OctaFX stands glaringly in the middle of that RBI-issued ‘Alert List.’
