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August 9, 2026

Dabba Trading

  • National Stock Exchange has issued notices naming entities involved in dabba trading.
  • Dabba trading is informal trading that takes place outside the purview of stock exchanges.
  • Traders bet on stock price movements without incurring a real transaction to take physical ownership of a particular stock as is done in an exchange.
  • Since there are no proper records of income or gain, it helps dabba traders escape taxation.
  • It is recognised as an offence under Securities Contracts (Regulation) Act (SCRA), 1956.

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