MOSCOW, April 18 - RAPSI. Russian companies serving individuals on the Forex market will be regulated by the Russian law by the end of 2012, said the Finance Ministry's representative Andrei Lozovoy.

He said the stock market law is to be amended.

The rendering of services via Forex is currently unregulated and around 500 Russian companies use off-shore schemes. Meanwhile the number of private Russian investors playing the Forex market exceed 400,000.

Most of the market players believe that Forex companies should operate on the basis of a dealer's license, said Alexei Timofeyev, the head of the National Association of Securities Market Participants.

According to Timofeyev, the advertising of Forex companies which receives the most complaints also requires regulation. Only licensed companies should be allowed to advertise and they should not promise unreasonable revenues. They must warn about the risks involved and should not be misleading.

Central bank Deputy Chairman Sergei Frolov is skeptical about Forex companies.

Playing a currency market, unlike equity investment does not finance economic growth, he explains. Besides, he thinks the highly liquid Forex market does not need any inflow from unsophisticated investors.