India Raids Zara FX, Freezes ₹39 Million in Crackdown on Unregulated Forex Trading

India Raids Zara FX in Forex Crackdown

Thiruvananthapuram, India — August 8, 2025
Indian enforcement agencies have raided the premises of Zara FX, now operating as Zarvista Capital Markets, and frozen bank accounts containing ₹39 million (about USD 445,000). The action is part of an ongoing probe into alleged illegal forex and contract-for-difference (CFD) trading activities.

₹39 Million Seized

According to a statement from the Enforcement Directorate (ED), the broker allegedly used mule accounts to collect deposits from Indian clients. These funds were reportedly routed through multiple bank and virtual accounts to conceal their origins. Officials say the platform lured investors with unusually high return promises, a hallmark of illegal trading schemes.

CEO Under Investigation

The ED confirmed that Zara FX’s CEO, Jamsheer ZaraFX, is a target of the investigation. While no formal charges have been filed, authorities have seized electronic devices, documents, and a hard disk for forensic examination.
The company has denied the allegations, stating it has no operational presence in India and that it complies with the laws of its registered jurisdiction in Cyprus.

Part of a Wider Enforcement Drive

The raid follows similar actions against other offshore brokers in recent months. Indian authorities have been ramping up enforcement against unregulated forex and CFD trading platforms, which remain illegal for retail investors in India under current regulations. The ED has warned that such operations can pose high financial risks and are often linked to money laundering.

Implications for Traders

Officials say this case underscores the government’s zero-tolerance approach to unregulated trading. Market analysts predict that more such platforms may be investigated in the coming months. Investors are advised to trade only through licensed brokers approved by the Reserve Bank of India and the Securities and Exchange Board of India.

Sources: Enforcement Directorate press release (August 8, 2025); Onmanorama; Times of India.