The National Stock Exchange (NSE) on Monday cautioned investors against two persons offering illegal 'dabba' trading in the stock market.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

'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 Nitin Shantilal Nagda and Narendra V Sumaria were providing 'dabba' trading.

These persons were registered with a trading member (TM) as an authorised person (AP) and the said association as an AP was subsequently cancelled by the TM.

ALSO READ: Income Tax Return 2023: Check ITR Filling Last Date, How to e-File Income Tax Returns Online - all you need to know detail process 

Cautioning investors, NSE asked them not to subscribe to any such scheme or product offered by any person providing illegal 'dabba' trading activity 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.

Catch the latest stock market updates here. For more news on sports, politics follow Zee Business