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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