The Multi Commodity Exchange of India (MCX) issued a caution to investors regarding a Telegram channel that is allegedly misusing its brand name to provide market tips. The exchange emphasized that it has no affiliation with the entity behind the Telegram channel named “YOGITA TRADER SEBI REGISTERED” and the link “https://t.me/lootdealsoffersbest.” MCX clarified that the entity is neither a registered trading member nor an authorized person of any of its members.
Investors were warned against engaging in illegal commodity derivatives trading platforms, also known as ‘dabba trading,’ as these activities are illegal and punishable under the Securities Contracts (Regulation) Act (SCRA), 1956, and the Bharatiya Nyaya Sanhita (BNS), 2023. Trading on unregulated platforms poses risks as they are not overseen by the Securities and Exchange Board of India (SEBI), depriving investors of the exchange’s protection framework in case of disputes.
MCX advised investors to verify the registration status of trading members and authorized persons before engaging with them and to avoid subscribing to trading schemes, products, or platforms offered by unregistered entities. Additionally, investors were cautioned against fraudulent advertisements and social media posts offering stock market or trading tips, with a warning that fraudsters might use deepfake videos and images to deceive individuals. The exchange encouraged the public to report suspected fraudulent activities through the government’s Chakshu facility under the Sanchar Saathi portal. Victims of cyber fraud were urged to report incidents to the National Cyber Crime Helpline (1930) or through the Cyber Crime portal.
