Dabba Trading

April 15, 2023

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.