There has been a significant spike in the number of retail investors going into illegal trading networks in order to book quick profits with the recent one flagged in terms of a Telegram channel called “Online Dabba Trading”.
Dabba trading is an illegal and unregulated form of trading in securities. In dabba trading, traders place deals in securities without the trades actually being executed on any official SEBI recognized stock exchange. These trades are settled internally by the dabba operator and are outside the purview of stock exchanges and regulatory bodies.
Since trades are not executed on official stock exchange platforms, investors can not avail grievances redressal mechanism of stock exchanges. Dabba trade offers no benefits of safe and guaranteed trades done on Stock Exchanges. Therefore, investor should exercise caution and should not indulge any kind of dabba trading, as per SEBI.
Varun Grover, Business Unit Head, mFilterIt, an fraud detection and prevention company told Times Now Digital that the dabba trading is illegal because it sidesteps the very safeguards meant to protect investors; no registration, no transparency, no accountability. “But its rise reflects something far more concerning than regulatory evasion: a quiet erosion of trust in the digital financial ecosystem. When fraudsters can mimic trusted brands, build convincing interfaces, and operate seamlessly across unregulated channels, the line between real and fake begins to blur. And when that line fades, confidence in the system weakens for everyone.”
“This is not just a compliance issue; it is a collective responsibility. Investors must remain alert; verifying platforms, questioning unrealistic promises, and stepping away from unsolicited advice. But the burden cannot rest on them alone.
The mandate for every leader in this space is clear: move from passive defence to active accountability. Real-time monitoring of brand representation, faster intervention, and tighter oversight of third-party channels must become non-negotiable operating standards. Trust is the most valuable asset in financial services and right now, it is being exploited faster than it is being protected.”
What are the illicit Dabba Trading channels?
The National Stock Exchange (NSE) has issued warning to investors about an unregistered group called ‘Close Friends Traders’, which is allegedly offering illegal dabba trading services through social media and a website.
According to NSE, this group is active on YouTube, Instagram, and Telegram under names such as “closefriendstraders” and “dabbatradingmcx”. It also operates a website claiming to be “India’s No. 1 Trading Platform Tradedost”.
The exchange has clarified that Close Friends Traders is not registered with NSE in any capacity, either as a broker or as an authorised person. A police complaint has already been filed against the entity for violating securities laws.
As per the NSE notification, there are illegal entities named ‘Bear&Bull PLATFORM’ and ‘Easy Trade’ which are providing dabba/illegal trading services.
There are also some named operators against whom the agencies have given cautious approach.
Tradeverse dabba trading network which is linked to an individual identified as Raju Bhai Solanki operating via website, mobile app, and direct contact.
Gurvinder Wealth social media network active across WhatsApp and YouTube channels, offering stock tips, and guaranteed returns.
What are the legal remedies?
These offences are cognizable. Police can directly investigate the matter and the dabba trading may also attract charges under the Bharatiya Nyaya Sanhita, 2023.
Under the Securities Contracts (Regulation) Act, 1956 (SCRA), violations can lead to up to 10 years imprisonment, fines up to Rs 25 crore or both.
