India financial regulator Securities and Exchange Board of India (SEBI) has announced a Settlement Order with Tauga Private Limited, earlier known as OctaFX India Private Limited, in the matter of Unregulated Forex trading platform by OctaFX.

This isn’t the first run-in for the OctaFX group with global regulators. Earlier this year we reported that the OctaFX website was blocked in Singapore (alongside that of fellow CFDs broker XM.com), as they were determined to be in breach of the Securities and Futures Act 2001 (SFA).

Background

The SEBI said that it advised the Bombay Stock Exchange (BSE) to examine the matter of OctaFX, which was allegedly carrying out illegal activities by providing an unregulated online trading platform for trading in forex derivatives. BSE, vide email dated March 14, 2022, submitted their report to SEBI.

Thereafter, SEBI conducted the examination and it was observed that OctaFX (now known as Tauga Private Limited), a SEBI registered Stock Broker, and its directors were associated with unauthorized forex trading platform via the website Octafx.com / OctaFX Trading App. It was also observed that OctaFX suppressed and denied its association with the unauthorized forex trading platform and thereby, indirectly promoted aforesaid trading platform and that OctaFX had failed to inform either SEBI or BSE, that Enforcement Directorate had conducted searches at several of its premises.

Based on the above findings in the examination, SEBI appointed a Designated Authority (DA) to conduct an enquiry. The DA, after conducting the enquiry, in its report dated May 6, 2024, recommended that the certificate of registration of the Applicant as a broker be cancelled.

Pursuant to receipt of the said enquiry report, the Competent Authority of SEBI caused to forward a copy of the said report to the Applicant by way of a Post Enquiry Show Cause Notice dated May 9, 2024 (the SCN) and advised the Applicant to submit its reply within 21 days from the date of the receipt of the SCN.

Subsequently, the Applicant filed the following application with SEBI proposing to settle the pending proceeding through a Settlement Order without admitting or denying the findings of fact and conclusions of law.

Settlement with OctaFX

Pursuant to receipt of the Settlement Application, the Authorised Representative of the Applicant had a meeting with the Internal Committee of SEBI (IC) on January 23, 2025, wherein the terms of settlement were deliberated. The IC considered the factors enumerated under Regulation 10 and Schedule II of the Settlement Regulations and permitted the Applicant to submit revised terms of settlement. Accordingly, the Applicant filed Revised Settlement Terms (RST) wherein the Applicant proposed the following:

• Monetary Terms: Payment of Settlement Amount of INR 3.2 million / (INR Thirty-Two Lakh only), equivalent to about USD $37,000.
• Non-Monetary Terms:
  • Surrender the Applicant’s SEBI Registration bearing registration No. INZ000294138;
  • The Applicant will not be eligible to apply for any registration with SEBI for a period of 5 years from the date of the Settlement Order.
  • The Applicant shall be debarred from buying/ trading in the Indian securities market (directly or indirectly) for a period of 1 year from the date of the Settlement Order.

The High Powered Advisory Committee (HPAC) in its meeting held on March 13, 2025 considered the RST proposed by the Applicant and recommended the case for settlement along with the condition that the Applicant has surrendered its registration and SEBI has cancelled it. The recommendation of the HPAC was placed before the Panel of Whole Time Members of SEBI. In terms of Regulation 15 of the Settlement Regulations, the Panel of Whole Time Members of SEBI approved and accepted the recommendations of the HPAC on April 22, 2025 and the same was communicated to the Applicant on May 5, 2025.

Pursuant to the same, the Applicant informed SEBI about the remittance of the settlement amount and SEBI has confirmed credit of the same. Subsequently, Applicant filed an application for surrender of its registration No. INZ000294138, which was approved by the Competent Authority on June 27, 2025 and the cancellation of the registration was approved on the SEBI Portal on July 9, 2025.