Zerodha's Nithin Kamath flags famous actors promoting unregulated trading platforms through ads
Zerodha's co-founder Nithin Kamath expressed concerns about celebrities, including actors, endorsing advertisements for unauthorized trading platforms. He noted seeing a famous actor promoting such a platform and gave them the benefit of the doubt regarding awareness. Notably, similar issues have arisen with actors endorsing Octafx, another problematic platform.
's co-founder on Thursday raised concerns about known celebrities like actors featuring in advertisements promoting unauthorised trading platforms.Kamath said he came across a famous actor's advertisement for an unauthorised and unregulated platform while giving the benefit of the doubt to the actor that "he may not be unaware of the platform."
Incidentally, a similar platform, , caused trouble for actors who advertised for them.
The Enforcement Directorate (ED) recently questioned television actors Karan Wahi and Krystle D'Souza for promoting the forex trading platform OctaFX and receiving cash for it, ET reported.
According to reports, it is understood that the agency wants to understand the operations of the platform and these actors may not be seen as wrongdoers or accused.
The money laundering case of the ED stems from a Pune Police (Shivaji Nagar police station) FIR filed against the app and its promoters who are alleged to have duped numerous investors by luring them with high returns.
According to the agency, the app of Octafx and its website were not authorised by the Reserve Bank of India to deal in forex trading. However, the platform was widely promoted on social networking sites and is following referral-based incentive models for acquiring users.
It has emerged in the investigation that multiple accounts of different Indian banks were being shown to investors on the OctaFx trading app and website for collecting funds in the guise of facilitating forex trading.
It was also found that OctaFx has manipulated trade activities and information shown on its platform ultimately resulting in net loss to the traders, according to the ED.
These accumulated funds, after "defrauding" these investors, were transferred to multiple e-wallet accounts or bank accounts of dummy entities.
The agency claimed that a network of chartered accountants and professionals, who gave fake certificates of remittances and facilitated bank accounts/companies for the layering of such funds, was involved in running this platform.
Source: Stocks-Markets-Economic Times
