NSE flags ‘dabba trading’ racket promising assured returns, files police complaint

The Stock Exchange of India Ltd (NSE) has cautioned investors against an individual allegedly running illegal trading operations through social media platforms and a mobile application, while promising assured returns in the stock market.

In a public advisory, the Exchange said it had received information about a person identified as “Giri”, operating via a mobile number and Facebook groups titled “DABBA TRADING” (https://www.facebook.com/share/p/1Cs8kqzojw/) and “Box Trading Dabba Trading” (https://www.facebook.com/share/p/16sWVX88hj/). The individual is also said to be using an application named “Tradezone” (https://tradezone.vip/tradezone.vip.apk) and a website (https://tradezone.vip) under the same name to solicit investors.

According to the NSE, the person is offering securities market tips, guaranteed returns on investments, and services to handle investors’ trading accounts by asking them to share their login credentials. The Exchange flagged these activities as illegal, including dabba trading — an unauthorised and off-market form of trading prohibited under Indian securities laws.

The Exchange clarified that the named individual and associated entities are not registered as members or authorised persons of any NSE-registered broker. It urged investors not to subscribe to any such schemes and to verify the credentials of stock brokers through the “Know/Locate your Stock Broker” facility available on its official website.

The NSE said a police complaint has been lodged in the matter.

The NSE also highlighted that violations under Sections 13, 16, 17 or 19 of the Securities Contracts (Regulation) Act, 1956 can attract imprisonment of up to 10 years or a fine of up to ₹25 crore, or both. Offences are cognisable under the Bharatiya Nagarik Suraksha Sanhita, 2023.