The International Financial Services Centres Authority (IFSCA) has issued a public warning regarding unregistered Broker Dealers operating in the GIFT-IFSC. These entities are promoting investment services through social media, particularly WhatsApp, and making unrealistic promises of high returns to lure unsuspecting investors. IFSCA urges the public to verify the registration status of any Broker Dealer on its official website, where a list of registered entities can be found. Individuals are advised to be cautious of those offering extraordinary returns with minimal risk, requesting upfront payments, or failing to provide proper registration documentation. IFSCA emphasizes its commitment to investor protection and market integrity, urging anyone who encounters suspicious Broker Dealers claiming to be registered to refrain from engaging with them and report such cases to the authority.
International Financial Services Centres Authority
Press Release
Caution to Public – Dealing with unregistered Broker Dealers in the IFSC
It has come to the notice of IFSCA that some entities claiming to be Broker Dealers in the GIFT-IFSC are offering investment services, particularly over social media platforms like WhatsApp and luring the general public in making spurious investments by promising high returns. In this regard, IFSCA would like to caution the public against dealing with such unregistered Broker Dealers and advises the following.
1. To protect your investments and ensure that you are dealing with a legitimate and regulated Broker Dealer, always verify their registration with IFSCA. Our official website ifsca.gov.in offers a list of all IFSCA registered Broker Dealers (under ‘Directory > Broker Dealers”). We advise the public to use this resource before engaging in any investment activities.
2. Be cautious of Broker Dealers who offer exceptionally high returns with little risk, demand upfront payments, or exhibit reluctance to provide documentation of their registration.
3. IFSCA is committed towards safeguarding interest of investors and integrity of financial markets. If you encounter a Broker Dealer who claims to be registered with IFSCA but cannot provide valid proof of their registration, refrain from dealing with them and report them immediately to IFSCA.
September 20,2024
Gandhinagar
