Online trading: Awareness and security

Lalit Nath

(lalitnath784@gmail.com)

Recently, the online trading scandal involving the notorious scammer, Vishal Phukan and his associate actress Sumi Bora, has caused a major uproar in Assam. In addition to Phukan and Bora, several other individuals involved in illegal online trading have come under scrutiny. Many young people, lured by the dream of quick riches, have become entangled in such schemes and lost everything. Without a proper understanding of online trading, numerous youths in Assam have been misled into such fraudulent businesses, leading to large-scale scams. 

It is crucial for investors to thoroughly understand the ins and outs of online trading before investing. Moreover, staying informed about national and international political conditions, market demands, and supply chains is essential for this type of trade. Investors must also be sharp, prudent, and digitally literate to avoid falling victim to cyber fraud.

Online trading refers to a system that allows the buying and selling of mutual funds, equities, bonds, sovereign gold bonds, derivatives, stocks, ETFs, and commodities through electronic platforms. With the widespread availability of smartphones and the internet, anyone can easily engage in online trading. It has become an integral part of modern business, allowing individuals to trade and invest in various financial markets from the comfort of their homes. 

Legitimate online trading is conducted through registered broking firms and is regulated by authorities such as SEBI (Securities and Exchange Board of India). SEBI’s primary responsibility is to protect investors and ensure transparency in the stock market, mutual funds, and other investment sectors.

Protecting Yourself

in Online Trading

In the realm of online trading, investors can easily be deceived if they engage with platforms or businesses that are not registered with SEBI or do not comply with its regulations. Without SEBI oversight, fraudsters may provide false information to trick investors into handing over large sums of money. Thus, investors must thoroughly understand SEBI regulations and only invest in companies registered under SEBI to ensure their investments are safe. Once individuals register with an online broking, they can deposit funds into their accounts and choose the assets they wish to trade. These platforms offer essential tools such as charts and financial data, enabling traders to make informed decisions.

Unfortunately, not all online trading is conducted ethically. Many fraudulent traders, such as Vishal Phukan and Sumi Bora in Assam, have swindled numerous people by promising unrealistic returns. These scammers use social media, mobile apps, and fake websites to lure unsuspecting individuals with promises of overnight wealth, only to steal large sums of money. Fraudsters often convince people to deposit money into what appear to be legitimate trading accounts, but instead use the funds for personal gain. They exploit the ease with which ordinary people can access online trading platforms.

Illegal online trading is often linked to fraudulent and scandalous activities. Key warning signs include promises of unusually high returns, pressure to invest, unclear terms and conditions, difficulties withdrawing money, unregistered or unlicensed platform, and endorsements from celebrities or influencers. Before investing, it is essential to verify whether the platform is legally recognised and regulated. 

Ensure that the chosen broker is registered with the relevant financial authority and check reviews to assess its credibility. Guaranteed returns are often a red flag, as financial markets are inherently risky and unpredictable. No legitimate broker would offer such promises.  

Awareness is vital to avoid falling prey to illegal online trading schemes. First and foremost, individuals must familiarise themselves with the fundamentals of online trading. They should avoid investing in platforms that offer unrealistic returns or seem suspicious. Before investing, one must thoroughly research any platform or business to ensure it is legitimate.

Additionally, individuals should be cautious about where they seek financial advice. Fraudsters often spread false information through social media or messaging apps. It is crucial to verify information from trusted sources and seek professional guidance. Regulatory authorities play an essential role in combating these fraudulent schemes by spreading awareness and enforcing regulations. Government agencies and financial institutions should regularly update the public on recent scams and provide guidance on safe trading practices.

While online trading offers profitable opportunities for those who understand its mechanisms, it also carries significant risks, especially when dealing with fraudulent individuals like Vishal Phukan and Sumi Bora. By staying vigilant, conducting thorough research, and following proper regulations, we can protect ourselves from the dangers of illegal online trading.