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...
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