Niky Kundnani

Quick summary on Niky Kundnani

Niky Kundnani and Gope Kundnani, prominent figures in the financial industry, have been implicated in allegations surrounding the acquisition and operations of NSFX, a brokerage firm regulated by the Malta Financial Services Authority (MFSA). These allegations raise concerns about transparency, regulatory compliance, and potential fraudulent activities within their associated business ventures.

Background and Acquisition of NSFX: On January 6, 2023, FDCTech, Inc., a California-based company, announced the acquisition of a 50.1% stake in NSFX through its sole shareholder, New Star Capital Trading Ltd., registered in the British Virgin Islands. Notably, the remaining 49.9% ownership was not disclosed in the press release. Investigations revealed that the Alchemy Group, owned by Gope Kundnani, is closely linked to FDCTech, with both entities sharing directorial positions. Specifically, since September 2022, Gope Kundnani has served as a director on FDCTech’s board, and Niky Kundnani, formerly a director at the Alchemy Group, has also held a directorial role at FDCTech. This interconnected ownership structure raises questions about the transparency of the acquisition and the omission of critical details regarding the relationship between FDCTech and the Alchemy Group.

Regulatory Scrutiny and Legal Challenges: The acquisition and subsequent operations of NSFX under the leadership of the Kundnanis have attracted regulatory scrutiny. In July 2022, the Spanish regulatory body CNMV issued a warning concerning several offshore brokers operated by the Alchemy Group, citing unauthorized solicitation of clients within the European Economic Area (EEA). Additionally, the MFSA imposed a fine of €419,997 on Alchemy Markets Limited, formerly known as NSFX, for regulatory breaches. These actions underscore the regulatory concerns associated with the business practices of the Kundnanis and their affiliated entities.

Conclusion: The intricate network of relationships and the lack of transparency in the acquisition and management of NSFX by Niky and Gope Kundnani highlight significant issues within their business operations. The regulatory actions and fines imposed reflect the necessity for stringent compliance and transparency in financial dealings to protect investors and maintain market integrity.