Business Standard

Thursday, January 16, 2025 | 07:37 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

National Stock Exchange cautions investors against 'dabba' trading

The exchange said that these persons are not registered either as a member or authorised persons of any registered member of the NSE. Moreover, a police complaint has been lodged in this regard

NSE, national stock exchange, nifty50

National Stock Exchange

Press Trust of India New Delhi

Listen to This Article

The National Stock Exchange (NSE) on Monday cautioned investors against some fraudsters 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.

The cautionary statements came after NSE found that the entities -- Shri Parasnath Commodity Private Limited, Shri Parasnath Bullion Private Limited, Faary Tale Trading Private Limited and Bharat Kumar (associated with Trade with Trust) --were providing dabba or illegal trading platform with assured returns.

The exchange said that these persons are not registered either as a member or authorised persons of any registered member of the NSE. Moreover, a police complaint has been lodged in this regard.

 

Cautioning investors, NSE asked them not to subscribe to any such scheme or product offered by any person or entity offering guaranteed returns 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 10 2023 | 11:33 PM IST

Explore News