Dabba trading is an illegal and unregulated form of trading in securities. In dabba trading, traders place deals in securities without the trades actually being executed on any official SEBI recognized stock exchange. These trades are settled internally by the dabba operator and are outside the purview of stock exchanges and regulatory bodies.
Since trades are not executed on official stock exchange platforms, investors can not avail grievances redressal mechanism of stock exchanges.
Dabba trade offers no benefits of safe and guaranteed trades done on Stock Exchanges. Therefore, investor should exercise caution and should not indulge any kind of dabba trading.
Please watch the following video:
What Is 'Dabba' Trading And Why It Is Dangerous?
Dabba Trading is illegal