Nitin Kamath Explains Why Zerodha Doesn’t Offer Crypto, Digital Gold, US Stocks

Kamath said on Twitter that the stock market is not the best way to buy unregulated commodities. “When you are regulated, everything is normally black and white. People keep asking me why we don’t offer crypto, unlisted private companies, US stocks, digital gold – which we didn’t anyway Sold because it’s not the best way to buy gold, and more.”

Kamath’s remarks came a day after markets regulator Sebi asked investment advisors to refrain from dealing in digital gold, an unregulated product.

Earlier, SEBI had noted that some registered investment advisors are engaged in unregulated activity by providing a platform to buy, sell or deal in unregulated products including digital gold.

“Such unregulated activity, including dealing (ie, advisory, distribution and execution/implementation services) in digital gold by investment advisors, is not in accordance with the provisions of the SEBI Act, 1992 read with the SEBI (Investment Advisors) Regulations, 2013”. ,” the regulator said in a statement.

It further said that any conduct in unregulated activities by investment advisors may lead to action under the SEBI Act and the rules made thereunder.

In August, the National Stock Exchange (NSE) had directed its members, including stockbrokers, to stop selling digital gold on its platform by September 10.

The directive came after the capital markets regulator noted that some members are providing a platform to their clients to buy and sell digital gold.

SEBI, through a letter dated August 3, informed the exchange that the said activity is in violation of the Securities Contracts (Regulation) Rules (SCRR), 1957 and members should refrain from such transactions.

SCRR norms prohibit members, either as principals or employees, from engaging in any business other than securities or commodity derivatives, except as a broker or agent, which does not involve any personal financial obligation.