New Delhi, May 2 (PTI) The National Stock Exchange (NSE) on Tuesday cautioned investors against two persons running illegal dabba trading with guaranteed returns to investors.

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 Suresh Jani and Vishnu Darak were providing dabba or illegal trading platforms with assured returns.

In addition, the bourse noted that Darak was offering to handle the trading accounts of investors by asking investors to share their user ID and password.

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The bourse said that these persons are not registered either as a member or authorised persons of any registered member of the NSE. Also, the bourse said that a police complaint has already been filed in this regard.

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 in two separate statements.

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)