NSE Warns Investors Of 'Dabba Trading' By Unregistered Group 'Close Friends Traders'
The National Stock Exchange of India on Tuesday has issued a warning to investors about an unregistered group called 'Close Friends Traders', which is allegedly offering illegal dabba trading services through social media and a website.
According to NSE, this group is active on YouTube, Instagram, and Telegram under names such as “closefriendstraders” and “dabbatradingmcx”. It also operates a website claiming to be “India's No. 1 Trading Platform Tradedost”.
The exchange has clarified that Close Friends Traders is not registered with NSE in any capacity, either as a broker or as an authorised person. A police complaint has already been filed against the entity for violating securities laws.
Dabba trading is an illegal activity that takes place outside official stock exchanges. It avoids regulation and does not go through the legal settlement process, putting investor money at serious risk. Engaging in such trading is a punishable offence under Indian law. Offenders can face up to 10 years in prison, a fine of up to Rs 25 crore, or both.
In addition to breaking financial market rules, dabba trading may also lead to criminal charges under the Bharatiya Nagarik Suraksha Sanhita and Bharatiya Nyaya Sanhita.
NSE strongly advises investors not to deal with Close Friends Traders or similar illegal platforms. If investors lose money while dealing with such unauthorised entities, they will not be protected under the exchange's investor safety rules. This means no access to grievance redressal, no dispute resolution, and no compensation.
The exchange has urged investors to remain alert and avoid schemes that promise high returns through unofficial means. Participating in such platforms is entirely at one's own risk and may lead to serious legal consequences.
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