National Stock Exchange (NSE) Warns Investors Against Illegal 'Dabba' Trading

On Monday, the National Stock Exchange (NSE) issued a warning to investors about two people offering 'dabba' trading in the stock market that is prohibited. The practice of "dabba" trading, in which owners of such trading rings permit individuals to transact in securities away from a stock exchange platform, is prohibited, as per PTI.

Following NSE's discovery that Nitin Shantilal Nagda and Narendra V. Sumaria were offering "dabba" trading, warning messages were issued. These individuals were registered as authorised persons (AP) with a trading member (TM), and the TM subsequently cancelled the stated association's status as an AP.

Investors were warned by NSE not to subscribe to any such programme or product given by anyone engaging in illicit stock market trading, or "dabba," as this is against the law.

Investors are warned against trading on such unlawful trading sites and are given this advice. As these illicit trading platforms are neither permitted nor endorsed by the exchange, participation in them is at the investor's own risk, expense, and risk of repercussions, according to the bourse.

In addition, it was added that investors would not have access to any exchange dispute resolution mechanisms, investor grievance redressal mechanisms, or benefits of investor protection under the exchange's jurisdiction for any issues involving such prohibited schemes.