**Summary:**
On July 13, 2025, the Securities and Exchange Board of India (SEBI) identified a newspaper advertisement in Navbharat promoting illegal "dabba trading" activities, which are unregulated off-market trading practices violating the Securities Contracts Regulation Act, 1956 (SCRA), SEBI Act, 1992, and Bhartiya Nyay Sanhita, 2023.
In response, SEBI has taken the following actions:
1. Formally communicated concerns to Navbharat regarding the publication of the advertisement.
2. Filed a complaint with the cyber police to pursue legal action against the involved entity and other involved entities.
3. The National Stock Exchange (NSE) issued an investor caution, accessible at https://www.nseindia.com/invest/advisoryforinvestors, alerting the public to the specific instance and reiterating the risks of dabba trading, while also emphasizing trading through SEBI-registered brokers on recognized exchanges.
The matter has been brought to the attention of the Advertising Standards Council of India (ASCI) for assessment of advertising standard violations and corrective measures. SEBI reiterates its commitment to protecting investors and advises vigilance against entities offering illegal trading services, while urging media houses to exercise due diligence in accepting financial advertisements.
Key Entities Referenced
Securities and Exchange Board of India: A regulatory body for securities markets in India, referred to as SEBI.
Navbharat: A Hindi daily newspaper in which an advertisement promoting dabba trading activities was published.
Securities Contracts Regulation Act, 1956: An act that was violated due to the promotion of dabba trading.
SEBI Act, 1992: An act that was violated due to the promotion of dabba trading.
Bhartiya Nyay Sanhita, 2023: An act that was violated due to the promotion of dabba trading.
National Stock Exchange: A stock exchange in India, referred to as NSE, which issued an investor caution regarding dabba trading.
Advertising Standards Council of India: An organization, referred to as ASCI, to which the matter was brought to assess violations of advertising standards.
Mumbai, Maharashtra: City in Maharashtra, India. Location from where the SEBI notification was issued.
PR No.44/2025
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).
Page 1 of 24. 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
Page 2 of 2