Key Insights
- SEBI has settled with Tauga Pvt Ltd (formerly OctaFX India) over its role in promoting unregulated forex trading, imposing a ₹3.2 million fine and revoking its brokerage license.
- Tauga agreed to surrender its SEBI registration, faces a 5-year ban on reapplying, and is barred from trading in Indian markets for 1 year.
- India’s Enforcement Directorate continues a parallel criminal probe into the global OctaFX brand, having seized $34.5 million in assets linked to alleged money laundering.
MUMBAI (MarketsXplora) India’s capital markets regulator has reached a settlement with Tauga Private Limited, formerly known as OctaFX India Private Limited, over its alleged involvement in running an unregulated forex and CFDs trading platform in the country.
The Securities and Exchange Board of India (SEBI) closed its probe into the firm after it agreed to pay INR 3.2 million (approximately $37,000), surrender its brokerage license, and accept trading and registration restrictions.
OcataFX Agrees to Ban, Fine and License Surrender
The settlement comes after SEBI’s investigation found that Tauga, a SEBI-registered stockbroker, and its directors were linked to unauthorized forex trading operations via the OctaFX.com website and the OctaFX Trading App—platforms not approved to operate within India’s financial ecosystem.
According to SEBI, the company not only failed to disclose its connection to these platforms, but also actively denied any such association. The regulator further noted that Tauga concealed a significant development: it did not inform SEBI or the Bombay Stock Exchange (BSE) that India’s Enforcement Directorate (ED) had previously searched its premises.
SEBI’s enquiry, initiated after a BSE report submitted on March 14, 2022, concluded that the company had violated multiple provisions. Following this, a designated authority recommended the cancellation of Tauga’s stockbroking license in May 2024.
Faced with the looming threat of deregistration, Tauga submitted a settlement application to SEBI. After negotiations with SEBI’s Internal Committee in January 2025 and subsequent revisions, the company agreed to the following non-monetary terms:
- Surrender of its SEBI stockbroker registration (INZ000294138),
- A five-year ban from applying for any SEBI registration,
- A one-year prohibition from trading in the Indian securities market.
SEBI’s High Powered Advisory Committee (HPAC) approved the settlement proposal in March, and the decision was ratified by the Panel of Whole Time Members on April 22. SEBI confirmed receipt of the settlement amount and processed the license cancellation on July 9, 2025.
ED Continues Criminal Probe Into OctaFX Global Operations
While SEBI’s civil enforcement has now concluded, the ED is continuing its criminal investigation into OctaFX’s global brand for alleged money laundering and illegal forex activity. Authorities have seized assets worth $34.5 million, including 19 properties in Spain, a luxury yacht named Cherry, a mini jet boat, high-end vehicles, and other holdings tied to the firm’s operations.
This isn’t the first time OctaFX has come under regulatory fire. Earlier in 2025, Singapore authorities blocked access to the OctaFX website, alongside that of fellow broker XM.com, citing violations of the Securities and Futures Act 2001.
At the center of this probe is Pavel Prozorov, identified by the ED as “the mastermind behind the platform OctaFX.” Indian authorities estimate that OctaFX generated nearly $93.4 million in proceeds from its Indian activities over just nine months. These funds have been classified as criminal proceeds.
OctaFX Denies India Ties
Despite this, a spokesperson for Octa’s global operations has strongly denied any links to OctaFX India or Prozorov. “The global broker Octa has no operational association with OctaFX India Private Limited,” the company told MarketsXplora, describing any claims suggesting otherwise as “incorrect.” Octa further asserted that none of its current management faces legal action and that it does not operate in Spain, as per its Customer Agreement.
Moreover, the firm said it has not received any legal notices regarding the ED’s raids, most recently conducted in June 2024 across seven locations in Mumbai, Chennai, Delhi, and Gurugram.
“We have no knowledge of any such actions involving our global operations,” the Octa representative stated, while expressing a willingness to cooperate with authorities “in accordance with applicable laws and legal procedures.”
SEBI’s investigation remains focused on the involvement of the registered Indian entity in unlicensed trading. The ED, however, continues to build its case against the wider OctaFX network and 54 individuals, having already filed two prosecution complaints.