In India Online Trading Platforms are very popular these days, specially among young investors who want quick money from their Investment. One of such trading platform is Binomo, which promotes itself as an leading internet trading platform for fixed-time trades. However a common and essential concern remains: Is Binomo legal in India or not?
What Is Binomo?
Binomo is a popular online trading platform that allows people to trade online including currencies, commodities, equities and indexes based on how their prices change over a specific period of time.
Users anticipate whether the price of an asset will go up or down in a short duration. Due to this prediction & Speculation based strategy many analysts compares Binomo to betting rather than traditional investment.
Regulatory Status of Binomo in India
Binomo is not currently regulated by any Indian financial institution, including the RBI or SEBI. SEBI must register and oversee any platform in India that lets people trade stocks, derivatives or other financial instruments. Binomo does not have such types of registration.
Because there are no such rules that Binomo is not officially allowed to operates as a trustworthy trading platform in India. As the trading portal may be accessible to Indian users online, accessibility does not equal legality.
Trading vs Gambling:
One of the main reasons Binomo’s legality is under scrutiny is that its way of trading is closely similar with betting or gambling. Indian law differentiates between games of skill and games of luck. The Public Gambling Act of 1867 and state-specific regulations are the primary laws which regulates and control gambling in India.
Binomo’s fixed-time trades completely depends on short-term price changes, which are generally caused by luck rather than expertise. Because of this reason only a lot of legal experts claims that such types of sites are gambling or betting services. Online gambling is prohibited in many states in India, making Binomo potentially illegal depending on how it is interpreted under state laws.
Warnings and restrictions from the government:
Indian govt. officials have been warning people about internet trade and betting sites that aren’t permitted in the past few years. Similar types of websites and Apps have been prohibited or warned for misleading users and creating financial losses. While Binomo has not been completely authorized. Indian users have faced concerns including as suspension of accounts, difficulties in withdrawal of money and lack of legal remedies.
Additionally, promoting unregulated financial products is prohibited and influences who are supporting such platforms have also come under scrutiny.
Risks for Indian Users:
As this trading platform is not authorized in India, that’s why users have no legal security if any difficulties arise. There is no assurance that your money will be safe, that prices will be genuine or the trading will be fair. The user is completely responsible for any losses caused and recovering funds through Indian courts is extremely difficult.
Conclusion:
Binomo is not legally authorized & even approved in India. While it may not be specifically classified as illegal under a single central law, its informal legal status and gambling or money betting like nature places this site in an illegal zone. Indian users should be extremely careful before using such platforms.
For your own financial safety, it’s a best choice to use only SEBI Authorized brokers and investment platforms. Choosing authorized services not only makes sure you follow Indian law but it also protects your money in a better way.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.
