An email sent to IX Global seeking comment remained unanswered at press time Sunday. According to the agency, OctaFX collected funds from users and then channelised the money through dummy entities. Indian laws allow only authorised dealer banks and firms having a forex trading licence to deal in foreign currencies.

Residents are permitted to trade currency futures contracts like dollar-rupee and euro-rupee on local stock exchanges. But an individual trader cannot trade directly in foreign currencies or even transfer funds abroad under RBI's liberalised remittance scheme to trade in currencies in offshore financial markets. In its complaint against IX Global, Canara Bank said that it had detected huge online transactions in two bank accounts in its Nardendrapur branch that were opened in the name of companies with fictitious documents, the police said.

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