Multi Commodity Exchange alerts investors against fake Telegram channel

Pic: MCX via X

The Multi Commodity Exchange of India (MCX) on Friday cautioned investors against a Telegram channel allegedly misusing its brand name to offer market tips and urged them to stay away from illegal commodity trading platforms.

In an advisory, the exchange said it had come to its notice that an entity operating through the Telegram channel "YOGITA TRADER SEBI REGISTERED" and the link "https://t.me/lootdealsoffersbest" was providing market tips while falsely using the MCX brand name.

MCX clarified that it has no association with the entity and said it is neither a registered trading member of the exchange nor an authorised person of any of its members.

The exchange warned investors not to participate in illegal commodity derivatives trading platforms, commonly known as ‘dabba trading', saying such activities are prohibited under law and are punishable under the relevant provisions of the Securities Contracts (Regulation) Act (SCRA), 1956, and the Bharatiya Nyaya Sanhita (BNS), 2023.

Investors trading on such unauthorised platforms do so entirely at their own risk, as these platforms are not regulated by the Securities and Exchange Board of India (SEBI), according to the commodity exchange.

It further cautioned that investors using such illegal platforms would not have access to the exchange's investor protection framework, dispute resolution mechanism or grievance redressal system in case of any dispute.

Moreover, the exchange advised investors to verify the registration status of trading members and authorised persons before dealing with them and to avoid subscribing to any trading schemes, products or platforms offered by unregistered entities.

MCX has warned investors against fraudulent advertisements and social media posts offering stock market or trading tips, saying fraudsters may use deepfake videos and images to lure people.

However, it urged the public to report suspected fraudulent communications through the government's Chakshu facility under the Sanchar Saathi portal.

Investors who have already fallen victim to cyber fraud were advised to report the incident on the National Cyber Crime Helpline (1930) or through the Cyber Crime portal, it added.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.