Zerodha blocks new purchases in illiquid penny stocks, options contracts
Zerodha founder and CEO Nithin Kamath said such trades could be used by phishers and fraud advisers.
April 27, 2020 / 11:47 AM IST
Discount broker Zerodha has blocked new purchases in illiquid penny stocks and options contracts.
Zerodha founder and Chief Executive Officer Nithin Kamath said such trades could be used by phishers and fraud advisers.
Zerodha, on April 17, cautioned clients about phishing scams and issued guidelines for clients using its trading platform Kite.
As per the company, fraudsters use fake websites and contact clients via SMS, email and social media.
Zerodha suggested users enable two-factor TOTP authentication instead of a PIN.
"We will start sending alerts and mandate an email or SMS OTP to be entered any time you log into Kite from a new device or location," Zerodha added on the statement.
The discount broker, which began operations in 2010, has over two million clients. It applied for a mutual fund license in February.