Beware of 3 Facebook Groups Offering Illegal Dabba Trading Services
Moneylife Digital Team 02 July 2026
National Stock Exchange of India (NSE) has cautioned investors against three Facebook groups allegedly offering illegal 'dabba trading' services, warning that such platforms operate outside the regulatory framework and expose participants to significant financial and legal risks. The Exchange has also lodged a police complaint against the entities and urged investors to avoid dealing with them. 
 
According to the NSE, the Facebook groups identified are ‘TRADE MIND (DABBA TRADING)’ having link https://www.facebook.com/groups/1104810884723075/ ,  ‘Dabba Trading broker 7303410141’ having link https://www.facebook.com/groups/568112324182962/  and ‘India's Best Dabba Trading Platform’ having link https://www.facebook.com/groups/1137771577167587 . The Exchange said these groups are allegedly providing dabba or illegal trading services, despite not being registered either as Exchange members or as authorised persons of any registered NSE member. 
 
Dabba trading refers to an illegal form of trading where transactions are carried out outside recognised stock exchanges. Since these trades are not routed through official exchange platforms, investors have no regulatory protection and are exposed to the risk of fraud, manipulation and non-settlement of trades. 
 
NSE has advised investors to verify the credentials of brokers and authorised persons before investing. It pointed out that investors can use the 'know/locate your stock broker' facility available on its website to check whether a broker or intermediary is registered with the Exchange. 
 
The Exchange also highlighted the stringent legal consequences of participating in or operating such illegal trading platforms. Under Section 23(1) of the Securities Contracts (Regulation) Act (SCRA), 1956, violations of the relevant provisions can attract imprisonment of up to 10 years, a fine of up to ₹25 crore, or both. Offences under Section 23 are cognisable under Section 25 of the SCRA, enabling investigation by state law enforcement authorities. Additionally, dabba trading may attract provisions of the Bharatiya Nyaya Sanhita, 2023, including Sections 61, 316 and 318. 
 
NSE further warned that investors transacting through such illegal platforms cannot avail themselves of the exchange's investor protection mechanisms. This includes access to the dispute resolution and investor grievance redressal mechanism administered by the Exchange. Any losses arising from participation in these platforms will have to be borne entirely by the investors. 
 
The Exchange reiterated that these unauthorised platforms are neither approved nor endorsed by NSE and urged investors to stay away from schemes or products offered by unregistered entities in the securities market. Participation in such platforms, it said, is entirely at the investor's own risk, cost and consequences.
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