MCX warns traders of managing unregulated entities by admin- Wednesday, September 8th, 2021 07:39:50 AM
Some unregulated net-based totally platforms are concentrated on gullible buyers with fake promises of exorbitant returns on their investment schemes and products
MCX has counseled investors from dealing with unregulated platforms which can be providing trading in positive unregulated spinoff merchandise referred to as Contracts for Difference and Binary Options.
Further, a few unregistered entities and unregulated internet-based totally systems are focused on gullible traders with fake promises of exorbitant returns on their funding schemes and products.
Some fraudsters also are sending emails and textual content messages luring the clients to change in these platforms, said MCX in a statement on Tuesday.
The entice in the direction of unstable systems
The growth in buying and selling prices and roll-out of top margin which requires entire money for trading as upfront margin had been using buyers to such volatile structures, said an analyst.
Earlier, even the NSE and the BSE had warned investors in dealing in those kind of systems.
MCX said clients falling prey to such fraudulent promises of exorbitant returns via those platforms can also ultimately lose money.
“Investors are cautioned to refrain from investing in unregulated net-based totally trading structures. They ought to deal only with SEBI registered Stockbrokers after duly checking their credentials. It may be referred to that best dealings with SEBI registered stockbrokers at the Exchange platform provide recourse to regulatory action,” it said.
“Clients must now not switch funds or securities to any person inclusive of a stockbroker beneath any association including confident returns as the identical is prohibited. However, they could transfer price range and securities for funding purpose only to the registered stockbrokers and not to any authorized man or woman or partner of stockbrokers,” it stated.