The Securities and Exchange Board of India (SEBI) has initiated enforcement and investor-awareness steps after a 13 July 2025 advertisement in the Hindi daily Navbharat promoted “dabba trading”, an illegal, unregulated form of off-market trading outside recognized stock exchanges. SEBI issued a formal communication to Navbharat raising concerns that the advertisement encourages unlawful trading practices and could mislead investors, and it lodged a complaint with cyber police seeking legal action against the entity and others involved. The National Stock Exchange (NSE) also issued an investor caution on the specific instance and entities, reiterating that investors should trade only through SEBI-registered brokers and on recognized stock exchanges. The matter was referred to the Advertising Standards Council of India (ASCI) to assess possible advertising-standard violations and ensure corrective steps, with SEBI reiterating that dabba trading violates provisions of the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992 and the Bhartiya Nyay Sanhita, 2023.
Securities & Exchange Board of India 2025-07-21
Securities and Exchange Board of India lodges cyber police complaint over Navbharat advertisement promoting illegal dabba trading
SEBI has taken action following an ad promoting illegal "dabba trading" in Navbharat. SEBI raised concerns with Navbharat, filed a cyber police complaint, and referred the issue to the Advertising Standards Council of India for potential violations. The National Stock Exchange also warned investors to trade only through SEBI-registered brokers and on recognized exchanges.