In a written reply to the Lok Sabha, Minister of State for Finance Arjun Ram Meghwal said Sebi is "conducting training programmes for police authorities of various states which includes a special module on illegal trading".
The minister was replying to a specific query on whether the government has taken cognizance of 'Dabba trading scam' operated by parallel share brokers in various states causing loss to the tune of over Rs 2 lakh crore to the exchequer.
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.
Illegal trading activities are punishable under the provisions of Indian Penal Code (IPC), in view of which Centre has, at various points of time, taken up this with state governments, the minister said.
The markets regulator has also in the past written letters to all state governments in this regard requesting them to take penal action in cases of illegal or dabba trading, he added.