![]() SEBI has been cracking down on dabba trading, and those found guilty can face hefty fines and imprisonment. It also undermines the integrity of the official stock exchanges and can cause significant losses for investors who participate in it. ![]() In this type of trading, transactions are conducted through unofficial channels or off-market platforms, which are not recognised by the Securities and Exchange Board of India (SEBI).ĭabba trading is illegal because it is unregulated and involves fraudulent activities, such as price manipulation and insider trading. Market This Week: Inflation Data, Earnings, Global Trends To Guide Movement What Analysts Sayĭabba trading is an illegal form of trading in shares, where operators of such trading rings allow people to trade in equities outside the stock exchange platform.ĭabba trading takes place outside the official stock exchanges. The term ‘dabba’ refers to a box or container used to store and transport goods, and in this context, it refers to an informal network of brokers who operate from small offices or even homes, using mobile phones or other communication devices to place trades on behalf of their clients. Participation in such illegal platforms is at the investor’s own risk, cost and consequences as such illegal trading platforms are neither approved nor endorsed by the exchange," the bourse said. ![]() “Investors are cautioned and advised not to trade on such illegal trading platforms. The exchange said that these persons are not registered either as a member or authorised persons of any registered member of the NSE.Ī police complaint has been lodged in this regard.Ĭautioning investors, NSE asked them not to subscribe to any such scheme or product offered by any person or entity offering guaranteed returns in the stock market as the same is prohibited by law. The National Stock Exchange (NSE) on Monday cautioned investors against some fraudsters running illegal dabba trading with guaranteed returns to investors. ![]()
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