Dabba trading
Also called: box trading, off-market trading
Illegal betting on share or index prices, recorded by an operator outside any recognised stock exchange and settled in cash between the operator and the customer.
In dabba trading no shares change hands and no exchange records the trades. There is no clearing corporation guaranteeing settlement, so nothing stops the operator from refusing to pay or disappearing, and the customer has no regulated complaint route.
Learn more in these lessons
- Unregistered and unauthorised intermediariesWhy is it risky to invest through someone not registered with SEBI?
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