# Is this forex app legal? checklist and prompt pack
**Seven official checks and three prompts.** (v1.1: Prompt 2 now checks the official lists itself.) Chillar Theory · v1.1 · 28 October 2026 · CC BY 4.0 · chillartheory.com/tools/is-this-forex-app-legal/

## What it does
It runs seven checks on any forex trading app, each against an official RBI, SEBI or exchange page, and counts the red, amber and green. The prompts read your screenshots of the app, its ads and its payment page, then have your own AI search the official RBI, SEBI and exchange pages for every name, website, number and payee, with proof: the exact words found and the date printed on the page. You confirm anything that turns a line red or green.

## What it won't do
- It won't call an app safe or legal. It counts what you found.
- It won't name any real app, broker or platform as good or bad.
- It won't tell you to trade, deposit or pick an app.
- It sends nothing to us. The prompts run in your own AI account. No signup.

## The rule behind it
The RBI's forex FAQ says a resident of India can trade forex electronically only on an RBI-authorised electronic trading platform (ETP) or a recognised exchange: NSE, BSE or MSE. Residents who trade on unauthorised platforms can face penal action under FEMA.
Source: https://rbi.org.in/Scripts/FAQView.aspx?Id=146 (last verified 25 October 2026)

## Known limits (read these first)
- It checks paperwork, not the trade. Green on every line won't stop you losing money. SEBI found 87.7% of individual traders in equity F&O made a net loss in FY26, on regulated Indian exchanges.
- Your AI can miss a name, misread a page or say it searched when it didn't. Open the page yourself before any line turns red or green. A search is only as good as the name you type. Apps advertise a brand; regulators list the company.
- One letter off a registered broker's name is a red flag, not a match.
- The RBI Alert List was last updated on 19 November 2025. Newer apps won't be on it yet.
- An AI can misread a screenshot or invent a link. Prompt 2 gives it the official links; use only those.
- Hedging a real rupee exposure has more detailed rules than one line can hold. Ask your bank's forex desk.

---

## Prompt 1: pull out the claims
```
I'm checking a forex trading app as a resident of India. Don't tell me
whether it's legal, safe or a good idea. From the screenshots and text
below, make a table with:
- the app or website name
- the legal entity, exactly as written in its terms
- every registration number, and who it says issued it (SEBI, RBI, an
  exchange, a foreign regulator, or nobody)
- the currency pairs it offers
- any leverage or margin claim (like 1:100 or 1:500)
- how deposits are paid (UPI ID, bank account, card, crypto wallet)
  and the exact payee name
Quote the exact words and say which screenshot each came from.
If something isn't shown, write "not shown". Don't guess, and don't
answer from memory.

Screenshots and text: [attach screenshots or paste the app's text here]
```

## Prompt 2: check the official lists
Turn on web search in your AI first.
```
Now check every claim on the official pages. Use web search for this,
and use only these pages:
1. SEBI registered stock brokers, currency derivative segment:
   https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=32
2. Exchange member directories:
   https://www.nseindia.com/invest/find-a-stock-broker
   https://www.bseindia.com/members/membershipdirectory
   https://mseindia.com/members/know-your-broker
3. RBI list of authorised electronic trading platforms (ETPs):
   https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=4080
4. RBI Alert List of unauthorised forex trading platforms:
   https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=4235
5 to 7. RBI forex FAQ (pairs, leverage, deposits):
   https://rbi.org.in/Scripts/FAQView.aspx?Id=146
On pages 1 to 4, search for the app name, the legal entity, every
website address, every registration number and every payee name in
your table. Give me one row per search: what you searched, which page,
FOUND, NOT FOUND or COULDN'T SEARCH, the exact words you saw if found,
and the "updated as on" date printed on that page.
If you can't open a page or use its search box, write COULDN'T SEARCH.
Never fill a row from memory.
For the RBI FAQ, quote the lines that apply to the pairs, the leverage
and the deposit route in your table.
Don't say the app is legal, safe, registered or authorised. Next to
every Alert List NOT FOUND, write the RBI's own words: "An entity not
appearing in the Alert List should not be assumed to be authorised
by the RBI."
```

## Prompt 3: pressure check
```
List every phrase in the screenshots that promises returns, pushes me to
act fast or claims official approval without proof (for example
"guaranteed profit", "fixed daily returns", "RBI approved", "SEBI
registered" with no number, "limited slots", "your account manager").
Also list every name that money would be paid to, and say whether it
matches the legal entity exactly.
Then stop. If I ask whether to deposit, trade, or which app to use,
refuse and remind me this is a paperwork check, not advice.
```

---

## The checklist (you fill this in)
App: ______________  Company in its terms: ______________
Offers: ______________  Deposits paid to: ______________  Registration number shown: ______________

| # | Check | Where to check (official) | Yes / No / Don't know | Colour |
|---|---|---|---|---|
| 1 | Is the company a SEBI-registered stock broker? | https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=32 | | |
| 2 | Is it a member of NSE, BSE or MSE for currency derivatives? | https://www.nseindia.com/invest/find-a-stock-broker , https://www.bseindia.com/members/membershipdirectory , https://mseindia.com/members/know-your-broker | | |
| 3 | Is it on the RBI's list of authorised ETPs? | https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=4080 | | |
| 4 | Is it on the RBI Alert List? | https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=4235 | | |
| 5 | Rupee pairs for speculation, or pairs like EUR/USD with no Indian exchange behind them? | https://rbi.org.in/Scripts/FAQView.aspx?Id=146 | | |
| 6 | Leverage claims like 1:100 or 1:500? Ask which exchange sets that margin. | https://rbi.org.in/Scripts/FAQView.aspx?Id=146 | | |
| 7 | Deposits to a personal UPI ID, a person's bank account or a crypto wallet? | https://rbi.org.in/Scripts/FAQView.aspx?Id=146 | | |

**How to colour each line**
- **Lines 1 to 3, the two doors.** Door one is a SEBI broker that's an exchange member (lines 1 and 2 both Yes). Door two is an RBI-authorised ETP (line 3 Yes). Yes is green. No is red, unless the other door is already proven, in which case that line is green. Don't know is amber.
- **Line 4, the trap.** Yes is red: stop there. No is green only if a door is proven on lines 1 to 3. Otherwise it stays amber, because the RBI says "an entity not appearing in the Alert List should not be assumed to be authorised by the RBI."
- **Lines 5 to 7.** Yes is red. No is green. Don't know is amber.

**Count:** ___ red, ___ amber, ___ green.

**Green on every line means the paperwork checks out, not that the trade is a good idea.**

## Worked example (fictional)
**NovaFX Pro** offers EUR/USD at 1:500, takes deposits by UPI to an individual's ID, shows no SEBI number, isn't on the ETP list and isn't on the Alert List. The exchange directories weren't checked yet.
1. SEBI broker: No. **Red.**
2. Exchange member: Don't know. **Amber.**
3. ETP list: No, and no exchange route proven. **Red.**
4. Alert List: No, but no door proven. **Amber.** This is the trap: a miss here feels like a clean chit, and it isn't one.
5. EUR/USD with no Indian exchange behind it. **Red.**
6. 1:500 leverage. **Red.**
7. UPI to a person. **Red.**
**Result: 5 red, 2 amber, 0 green.**

## Lost money already?
The RBI's FAQ points to the National Cyber Crime Reporting Portal (cybercrime.gov.in), the Enforcement Directorate and your state police.

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*This newsletter is for education only. It is not investment, tax or legal advice and does not recommend any security or product. Do your own research or consult a registered professional.*

Method and story: https://chillartheory.com/india/issues/04/