Latest News | NSE Warns Investors Against Illegal 'dabba' Trading

New Delhi, Apr 17 (PTI) The National Stock Exchange (NSE) on Monday cautioned investors against two persons offering illegal 'dabba' trading in the stock market.

'Dabba' 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.

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The cautionary statements came after NSE found that Nitin Shantilal Nagda and Narendra V Sumaria were providing 'dabba' trading.

These persons were registered with a trading member (TM) as an authorised person (AP) and the said association as an AP was subsequently cancelled by the TM.

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Cautioning investors, NSE asked them not to subscribe to any such scheme or product offered by any person providing illegal 'dabba' trading activity in the stock market as the same is prohibited by law.

"Investors are cautioned and advised not to trade on such illegal trading platforms. 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.

For any kind of disputes relating to such prohibited schemes, mechanisms such as benefits of investor protection under the exchange's jurisdiction, exchange dispute resolution mechanism and investor grievance redressal mechanism administered by the exchange, would not be available to investors, it added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)