Dabba Trading

Recently, the National Stock Exchange (NSE) issued a string of notices naming entities involved in dabba trading.

About Dabba Trading

  • It refers to informal trading that takes place outside the purview of the stock exchanges.
  • In this form of trading, brokers execute trades for clients without placing them on stock exchanges.
  • Instead, the brokers maintain their own trading books or 'dabba' and settle trades with clients outside the exchange.
  • 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.
  • In simple words, it is gambling centred around stock price ....
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