Mumbai, July 13 (IANS) The Multi Commodity Exchange of India Limited (MCX) on Monday cautioned investors against fraudulent entities misusing its brand name to lure people into illegal trading platforms through social media, websites, mobile applications and messaging services.

In a public advisory, the country’s leading commodity derivatives exchange said it has been informed that certain unscrupulous individuals and entities operating in and around Jaipur, Rajasthan, are impersonating MCX and using Indian as well as international mobile numbers, websites, applications and platforms such as WhatsApp, Telegram, Facebook and Instagram to target investors.

According to the exchange, these entities falsely claim to be associated with reputed organisations or individuals, offer unregulated trading platforms and unauthorised trading applications, and promise assured or guaranteed returns on investments.

They are also sending invitations to social media groups with claims of quick profits and asking investors to transfer money through unverified links or third-party applications.

In some cases, fraudsters are impersonating MCX employees or falsely claiming collaborations with the exchange.

MCX clarified that it has no connection whatsoever with these entities and emphasised that they are neither registered members of the exchange nor authorised persons associated with any of its trading members.

“It may be noted that MCX is in no way connected with such entities. Further the said entity is neither registered as a Member of the Exchange nor associated as an Authorized Person of any of the Members of the Exchange,” it said.

The exchange advised investors not to trade on such illegal commodity derivatives platforms, noting that such activities are prohibited by law and operate outside the regulatory framework of the Securities and Exchange Board of India (SEBI).

“Investors are cautioned and advised NOT to trade on such illegal trading platforms in Commodity Derivatives Market as the same is prohibited by law. Participation on such illegal platforms is at the investor’s own risk, cost and consequences as such illegal platforms are not regulated by SEBI, the regulatory authority,” it mentioned.

MCX also warned that investors participating on these unauthorised platforms would not have access to investor protection measures available under the exchange’s jurisdiction, including dispute resolution and grievance redressal mechanisms.

–IANS

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