Sebi promises stern action against 'dabba trading'

Operators of such trading rings allow people to trade in equities outside the stock exchange platform

U K Sinha, chairman of Securities and Exchange Board of India, on Tuesday, expressed concern about "dabba trading" in different parts of the country and said the market regulator would take "stern action" to curb such illegal practices.

Dabba trading is an illegal form of trading in shares, where operators of such trading rings allow people to trade in equities outside the stock exchange platform.

Talking to the reporters on the sidelines of a Sebi function, Sinha said that the market regulator is concerned about "dabba-trading" in Rajkot as well as other areas and has decided to take "stern action" to curb it.

"I met local brokers in Rajkot today and they informed me about dabba trading, which is popular in Rajkot as well as its surrounding areas. The SEBI has decided to take stern action to curb it," he said.

"The market and investors suffer a lot due to dabba-trading, which is an improper activity. We want to curb it strictly with the support of the police and the Gujarat state government," Sinha said.