LEGAL & COMPLIANCE
Regulatory Compliance.
Last updated: May 2026 | FundX by BlackAce Consultancy Private Limited
CONTENTS
01 — OVERVIEW
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. Our operations are strictly aligned with 2026 SEBI/RBI guidelines and FEMA regulations.
No Real Trading
100% simulated environment
No Financial Advice
Pure skill evaluation only
Prize Payouts
TDS deducted on all payments
Data Protection
User data handled responsibly
02 — SEBI ALIGNMENT
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.
Simulated Environments
No live market trading is conducted. All trading activity occurs in a fully simulated paper trading environment.
Pure Evaluation
Users are assessed on technical proficiency only. No trading signals, tips, or investment advice is provided.
Risk Disclosures
Explicit risk warnings are provided across all platform touchpoints regarding the volatility of financial markets.
We proactively monitor regulatory updates for 2026 to ensure our proctoring technologies remain ahead of industry standards for retail participation safety.
03 — FEMA & RBI
FEMA & RBI Guidelines
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 in compliance with RBI guidelines.
No Capital Outflow
We do not facilitate any margin remittances or overseas investments under the Liberalised Remittance Scheme (LRS).
Mock Environment
International indices are traded exclusively in a mock environment using virtual capital with no real exposure.
04 — TAXATION
TDS & Taxation
In compliance with the Income Tax Act of India, all payouts to participants are treated as Professional Consultancy Fees.
TDS Deduction
FundX deducts applicable Tax Deducted at Source (TDS) on all prize payments, ensuring full transparency with the Income Tax authorities of India.
Professional Fee Classification
Prize rewards are classified as professional consultancy fees, not gambling winnings, consistent with the skill-based nature of the evaluation.
05 — SENTINEL ENGINE
Sentinel Engine Protocol
Our AI-driven risk firewall is not just a tool for risk management — it is a compliance layer.
Gambling Behavior Prevention
The Sentinel Engine actively detects and prevents gambling-style trading patterns, ensuring that only skill-based, disciplined trading is rewarded.
Meritocratic Assessment
By enforcing strict drawdown limits, session minimums, and profit targets, the engine maintains the integrity of the evaluation process and protects all participants.
Sentinel Engine v4.0
Currently active across all FundX evaluation accounts. Real-time risk monitoring with automated compliance enforcement.