Regulatory Compliance
Last updated: May 2026 | FundX (A product of BlackAce Consultancy Private Limited)
1. Compliance Overview
FundX operates as a Skill-Assessment Technology Provider. Our business model is designed to be fully transparent and compliant with the evolving regulatory landscape of the Indian financial ecosystem. We prioritize institutional-grade discipline and adherence to all governing laws.
2. 2026 SEBI Alignment
FundX is operated by BlackAce Consultancy Private Limited which follows the strict "No-Advice" doctrine in alignment with SEBI (Investment Advisers) Regulations. Our platform provides:
- Simulated Environments: No live market trading is conducted.
- Pure Evaluation: Users are assessed on technical proficiency, not provided with signals or tips.
- Risk Disclosures: Explicit warnings regarding the volatility of financial markets.
We proactively monitor regulatory updates for 2026 to ensure our proctoring technologies (Sentinel Engine) remain ahead of industry standards for retail participation safety.
3. FEMA & RBI Guidelines (LRS Compliance)
We comply with FEMA 2026 guidelines regarding the export of technology services. As a SaaS provider:
- Purpose Code P0802: All subscription fees are classified under 'Software and Data Processing Services'.
- No Capital Outflow: We do not facilitate any margin remittances or overseas investments under the Liberalised Remittance Scheme (LRS).
- Mock Environment: International indices (SQQQ, Gold, etc.) are traded exclusively in a mock environment with virtual capital.
4. TDS & Taxation
In compliance with the Income Tax Act of India, all payouts to participants (Profit Splits) are treated as 'Professional Consultancy Fees'. FundX deducts applicable TDS (Tax Deducted at Source) on all payments, ensuring full transparency with the tax authorities.
5. Sentinel Engine Protocol
Our Sentinel Engine acts as an AI-driven risk firewall. It is not just a tool for risk management but a compliance layer that prevents 'Gambling Behavior' and ensures that only skill-based trading is rewarded, maintaining the integrity of the meritocratic assessment process.