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

On Twitter, Kamath said that unregulated items in the stock market are not the best way to buy. “When you’re regulated, everything is normally black and white. People keep asking me why we don’t offer crypto, privately held private companies, US stocks, digital gold – which we haven’t sold anyway because it’s not the best way to buy gold, and more.”

Kamath’s comments came a day after market regulator Sebi asked investment advisers not to trade digital gold, an unregulated product.

Previously, Sebi had noted that some registered investment advisers engage in unregulated activities by providing a platform for buying, selling or trading unregulated products, including digital gold.

“The undertaking of such unregulated activities, including trading (i.e., advisory, distribution and execution/implementation services) in digital gold by investment advisers 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 trading in unregulated activities by investment advisers could lead to action under the Sebi Act and the regulations under it.

In August, the National Stock Exchange (NSE) instructed its members, including stock brokers, to stop selling digital gold on their platforms by September 10.

The direction came after the capital markets regulator noted that certain members are providing their clients with a platform for buying and selling digital gold.

Sebi informed the exchange by letter dated August 3 that the said activity violates the Securities Contracts (Regulation) Rules (SCRR), 1957, and that members must refrain from such transactions.

SCRR standards prohibit members from engaging in any business other than securities or commodity derivatives, as principal or employee, except as broker or agent, without any personal financial liability.