India's Enforcement Directorate (ED) has taken measures against forex-dealing firms operating illegally in Hyderabad, leading to cash and foreign currency confiscation. This shows an increase in regulatory pressure on the unauthorized firms that are interacting with Indian clients.
ED Targets Unlicensed Forex Firms in Hyderabad
On October 17-18, 2025, the ED raided five Hyderabad locations associated with firms like Prism Forex, Garuda Forex, Sree Vimal Nath Forex, Victory Forex, and Digital Forex. These firms were reportedly facilitating illegal forex transactions without the proper permissions from the Reserve Bank of India (RBI). Enforcement seized ₹38.7 lakh in cash (approx. $46,460) and recovered ₹11.9 lakh (approx. $14,505) in unaccounted Indian currency and ₹26.7 lakh (approx. $32,057) in unaccounted foreign currency, along with other electronic records.
Rising Compliance Pressure on Indian Forex Market
This enforcement action is a significant milestone in India's initiative against unauthorized forex operations. Brokers with Indian clients, especially offshore, will find themselves under an increased level of compliance risk. Depending on future regulatory action, they may find their ability to access liquidity and onboard Indian clients increasingly at risk.
WikiLix Insight: Lessons for Global Brokers
While this is not the suspension of a global broker, it is again grounds for recognizing the regional compliance risk. Indian authorities are taking active aim against unauthorized forex entities, and this demonstrates that affected brokers need to immediately reevaluate their exposure to the Indian market, adjust their AML/ KYC controls accordingly, and must not onboard any Indian residents until there has been full regulatory approval.Title: India’s ED Raids Unlicensed Forex Dealers
