India’s securities market regulator has settled with Tauga Private Limited (formerly OctaFX India Private Limited) for INR 3.2 million (approximately $37,000) over its alleged links with the global forex and contracts for differences (CFDs) trading platform, which is not authorised to operate locally. However, the company neither admitted nor denied the allegations made by the regulator.
The settlement between the Securities and Exchange Board of India (SEBI) and Tauga also requires the company to surrender its brokerage registration.
In addition, Tauga is barred from applying for SEBI registration for the next five years and prohibited from buying and trading in the Indian securities market for one year.
SEBI’s investigation focused solely on the involvement of a registered entity with the unregistered operations of OctaFX in the country. The global Octa platform, which offers FX and CFDs brokerage services, however, denied of any connection with the Indian entity.
“The global broker Octa has no operational association with OctaFX India Private Limited,” an Octa represetnative told FinanceMagnates.com. “Claims suggesting otherwise are incorrect.”
$93.4 Million in 9 Months
Despite the settlement with SEBI, the Enforcement Directorate (ED), India’s financial crime agency, is continuing its investigation into the OctaFX brand for alleged violations of the country’s money laundering laws. The agency has seized and attached assets worth $34.5 million linked to OctaFX, including 19 properties in Spain owned by Pavel Prozorov, described as “the mastermind behind the platform OctaFX.”
The seized and attached assets include a luxury yacht named Cherry, a mini jet boat, a luxury car, and residential properties. Octa, however, has denied any connection to Prozorov.
Related: OctaFX Calls Allegations by India “Unsubstantiated” as Authorities Seize $9.6M
According to Indian authorities, Octa generated around $93.4 million from its Indian operations over a nine-month period, which has been classified as “proceeds of crime.” The broker brand even sponsored a prominent cricket team in India’s domestic league.
The ED further stated that it has filed two prosecution complaints against OctaFX and 54 other individuals.
“None of Octa’s current management is facing any legal issues,” an Octa representative previously told FinanceMagnates.com. “The company has no connection to any properties seized by the Spanish authorities and has not received any notice from local law enforcement. Additionally, Octa does not offer services in Spain, as stated in its Customer Agreement.”
Read more: Singapore to Block Access to Octa and XM for Unlicensed Operations
An Investigation by SEBI and BSE
SEBI also advised the Bombay Stock Exchange (BSE), one of India’s main stock exchanges, to investigate OctaFX’s alleged unauthorised forex trading operations in the country. The BSE submitted its report on 14 March 2022.
According to SEBI, the locally registered OctaFX India and its directors were linked to the unauthorised forex trading platform operated via Octafx.com and the OctaFX Trading App.
The regulator also noted that OctaFX India concealed and denied its association with the unregistered platform, thus indirectly promoting it.
Additionally, OctaFX India failed to notify SEBI or BSE that the ED had raided its offices. According to the agency, its most recent raid took place last June across seven locations in four Indian cities—Mumbai, Chennai, Delhi, and Gurugram—as part of its probe into OctaFX.
“Regarding the Enforcement Directorate’s statement about their recent raids, we have no knowledge of any such actions involving our global operations,” the Octa representative said, adding that “we cannot comment on matters involving unrelated third parties over whom we have no oversight.”
“Octa broker is open to cooperation with the relevant authorities and is ready to provide assistance to them in accordance with applicable laws and legal procedures.”
India’s securities market regulator has settled with Tauga Private Limited (formerly OctaFX India Private Limited) for INR 3.2 million (approximately $37,000) over its alleged links with the global forex and contracts for differences (CFDs) trading platform, which is not authorised to operate locally. However, the company neither admitted nor denied the allegations made by the regulator.
The settlement between the Securities and Exchange Board of India (SEBI) and Tauga also requires the company to surrender its brokerage registration.
In addition, Tauga is barred from applying for SEBI registration for the next five years and prohibited from buying and trading in the Indian securities market for one year.
SEBI’s investigation focused solely on the involvement of a registered entity with the unregistered operations of OctaFX in the country. The global Octa platform, which offers FX and CFDs brokerage services, however, denied of any connection with the Indian entity.
“The global broker Octa has no operational association with OctaFX India Private Limited,” an Octa represetnative told FinanceMagnates.com. “Claims suggesting otherwise are incorrect.”
$93.4 Million in 9 Months
Despite the settlement with SEBI, the Enforcement Directorate (ED), India’s financial crime agency, is continuing its investigation into the OctaFX brand for alleged violations of the country’s money laundering laws. The agency has seized and attached assets worth $34.5 million linked to OctaFX, including 19 properties in Spain owned by Pavel Prozorov, described as “the mastermind behind the platform OctaFX.”
The seized and attached assets include a luxury yacht named Cherry, a mini jet boat, a luxury car, and residential properties. Octa, however, has denied any connection to Prozorov.
Related: OctaFX Calls Allegations by India “Unsubstantiated” as Authorities Seize $9.6M
According to Indian authorities, Octa generated around $93.4 million from its Indian operations over a nine-month period, which has been classified as “proceeds of crime.” The broker brand even sponsored a prominent cricket team in India’s domestic league.
The ED further stated that it has filed two prosecution complaints against OctaFX and 54 other individuals.
“None of Octa’s current management is facing any legal issues,” an Octa representative previously told FinanceMagnates.com. “The company has no connection to any properties seized by the Spanish authorities and has not received any notice from local law enforcement. Additionally, Octa does not offer services in Spain, as stated in its Customer Agreement.”
Read more: Singapore to Block Access to Octa and XM for Unlicensed Operations
An Investigation by SEBI and BSE
SEBI also advised the Bombay Stock Exchange (BSE), one of India’s main stock exchanges, to investigate OctaFX’s alleged unauthorised forex trading operations in the country. The BSE submitted its report on 14 March 2022.
According to SEBI, the locally registered OctaFX India and its directors were linked to the unauthorised forex trading platform operated via Octafx.com and the OctaFX Trading App.
The regulator also noted that OctaFX India concealed and denied its association with the unregistered platform, thus indirectly promoting it.
Additionally, OctaFX India failed to notify SEBI or BSE that the ED had raided its offices. According to the agency, its most recent raid took place last June across seven locations in four Indian cities—Mumbai, Chennai, Delhi, and Gurugram—as part of its probe into OctaFX.
“Regarding the Enforcement Directorate’s statement about their recent raids, we have no knowledge of any such actions involving our global operations,” the Octa representative said, adding that “we cannot comment on matters involving unrelated third parties over whom we have no oversight.”
“Octa broker is open to cooperation with the relevant authorities and is ready to provide assistance to them in accordance with applicable laws and legal procedures.”
