Zerodha’s Co-founder Nithin Kamath has expressed concerns about celebrities especially the actors for endorsing advertisements for unauthorised and unregulated trading platforms.
He took to LinkedIn to express his thoughts. He highlighted that he had come across an advertisement featuring a well-known star who probably had no idea of the legal status of the platform he was promoting.
In his post, he pointed to Octafx, the online forex trading app. The app got the actors who endorsed it in trouble including TV actors Karan Wahi and Krystle D’Souza. As their role for ‘promoting’ the app is being questioned, the statements are being recorded under the Prevention of Money Laundering Act.
The money laundering case of the ED stems from a Pune Police FIR filed against the app and its promoters who are alleged to have duped numerous investors by luring them with high returns.
Quite vocal about his views, Kamath, said, “Came across a famous actor’s ad for an unauthorised and unregulated platform. I guess the actor is unaware. A similar platform, Octafx (caught in a scam), caused trouble for actors who advertised for them.”
His post quickly gained traction with many highlighting how actors, or celebrities in general, should be more responsible about promoting claims, products and services.
Said one user, “Actors hold significant sway in shaping public perception and consumer behavior. Conducting comprehensive due diligence before endorsing a product is not only a practical necessity but also an ethical obligation. By carefully selecting endorsements, actors can protect their reputation, avoid legal pitfalls, and maintain the trust of their audience. In the end, due diligence is a win-win for both the actor and the consumer.”
“OctaFx, Olymp Trade etc are like a scam in itself. Any such thing not regulated by SEBI or similar regulators is highly fishy,” added another user.