Zerodha’s Nithin Kamath joins RBI in warning against illegal forex trading platforms

Zerodha CEO Nithin Kamath has joined the Reserve Bank of India (RBI) in warning against illegal electronic trading platforms offering currency trading to Indians.

“We warned people about illegal CFD, Forex and Binary trading platforms a while back, but I keep seeing these ads which means people are still losing money,” Kamath said. .

“Today’s RBI press release will hopefully put an end to these illegal platforms,” ​​said the founder of Zerodha, known for his educational tweets on markets and business.

Earlier today, RBI raised concerns over unauthorized electronic trading platforms offering forex trading facilities to Indians.

The central bank said it noticed misleading advertisements of unauthorized electronic trading platforms (ETPs) offering forex trading services to Indian residents, including on social media platforms, search engines, Over The Top platforms ( OTT), game apps, etc.

Additionally, there have been reports of fraud committed by such unauthorized ETPs or portals and many residents losing money due to such transactions, RBI added.

RBI said Indians can only undertake foreign exchange transactions with authorized persons and for authorized purposes as per the Foreign Exchange Management Act (FEMA).

To subscribe to Mint Bulletins

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now!!

Comments are closed.