The Securities and Exchange Board of India (SEBI) has addressed an advertisement published in the Hindi daily “Navbharat” on July 13, 2025, which promoted illegal “dabba trading” activities. Dabba trading is an unregulated, off-market trading practice outside recognized stock exchanges, violating the Securities Contracts (Regulation) Act, 1956, SEBI Act, 1992, and Bhartiya Nyay Sanhita, 2023. In response, SEBI has formally communicated its concerns to Navbharat, urging diligence in financial advertisements. A complaint has been lodged with the cyber police for legal action against the involved entities. The National Stock Exchange (NSE) has also issued an investor caution, highlighting the risks of dabba trading and advising investors to only trade through SEBI-registered brokers on recognized exchanges. Additionally, the matter has been referred to the Advertising Standards Council of India (ASCI) for review. SEBI reiterates that dabba trading is illegal and urges both investors to be vigilant against such services and media houses to exercise due diligence.
Newspaper advertisement in Navbharat on 13th July, 2025 promoting illegal dabba
trading activities
The Securities and Exchange Board of India (SEBI) has taken serious note of an advertisement promoting dabba trading activities published in the Hindi daily newspaper Navbharat on 13th July, 2025.
Dabba trading refers to illegal and unregulated off-market trading that operates outside the purview of recognized stock exchanges and regulatory oversight. Such activities pose significant risks to investors and are a violation of various provisions of the Securities Contracts (Regulation) Act, 1956 (SCRA), SEBI Act, 1992 and Bhartiya Nyay Sanhita, 2023.
In respect of the said advertisement, SEBI along with NSE have taken the following actions:
1. SEBI has issued a formal communication to Navbharat, expressing concern over the publication of an advertisement that encourages unlawful trading practices and potentially misleads investors.
2. A complaint has also been lodged with the cyber police, seeking appropriate legal action against the entity and other entities involved.
3. The National Stock Exchange (NSE) issued an investor caution alerting the public about this specific instance and the entities involved, reiterating the dangers of engaging in dabba trading. The caution highlights that investors should only trade through SEBI-registered brokers and on recognized stock exchanges. The same can be accessed through the following link (https://www.nseindia.com/invest/advisory-for-investors).
4. The matter has also been brought to the attention of the Advertising Standards Council of India (ASCI) to assess violations of advertising standards and to ensure appropriate corrective steps.
It is reiterated that dabba trading is illegal, and SEBI is committed to safeguarding investor interests through regulatory enforcement, awareness, and coordination with law enforcement agencies.
Investors are advised to remain vigilant and not to deal with any entity offering illegal trading services.
SEBI urges all media houses to exercise due diligence before accepting and publishing advertisements related to financial products and services.
Mumbai
July 21, 2025
