NSE issues investor warning against illegal dabba trading service

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NSE's Dabba Trading Warning

Highlights

NSE issues warning about dabba trading service offered by Akhil Singh via mobile 9582675129, Facebook 'Dabba Treding', APK link, and metapro.info.
The exchange stated that the concerned individual is not listed as any of its registered members or authorized persons, and appealed to investors to verify.
Upon conviction for dabba trading, penalties include up to ten years imprisonment, fines up to Rs 25 crore, and no access to investor protection mechanisms.

This article was translated from the original. Read the original version by our correspondent here.

Alleged Platform and NSE's Warning

According to NSE India, a person named Akhil Singh is offering dabba or illegal trading services through mobile number 9582675129, the Facebook group "Dabba Treding", an APK link, and the metapro.info website. The exchange has advised investors not to subscribe to any such scheme or product, as these activities are prohibited by law.

NSE also stated that investors can use the "Know/Locate your Stock Broker" facility available on its website to verify registered brokers and their authorized persons. According to the exchange, the concerned individual is not listed as any of its registered members or authorized persons.

Legal Risks and Impact on Investor Protection

The exchange said that under Section 23(1) of the Securities Contracts Regulation Act, 1956, prosecution can be initiated for violating relevant provisions, and upon conviction, the penalty can be up to ten years imprisonment, a fine of up to Rs 25 crore, or both. As per Section 25, such offenses are cognizable and can also be investigated by state law enforcement agencies.

NSE further stated that dabba trading, apart from violating securities laws, also falls under certain sections of the Bharatiya Nyaya Sanhita, 2023. The exchange warned investors that participation on such illegal platforms is entirely at their own risk, cost, and consequences, and in disputes related to such schemes, the exchange's dispute resolution mechanism, investor grievance redressal system, and other protections will not be available.

Our previous report discussed NSE's warning regarding the Facebook group ‘Online dabba trading Mumbai’, which the exchange had identified as an illegal trading service. The article explained that investors participating in any scheme of such unregistered operators generally do not have access to exchange facilities like investor protection, grievance redressal, and dispute resolution, and advised using the “Know/Locate your Stock Broker” tool for verification.

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