NSE Warns Investors Against Illegal Dabba Trading Networks Promising ‘Guaranteed Returns’

The National Stock Exchange of India (NSE) has issued a fresh advisory cautioning retail investors against a growing number of illegal trading networks luring users with promises of “assured returns” and expert-managed accounts. The warning specifically flagged a Telegram channel named “Online Dabba Trading,” which allegedly offers stock tips and account-handling services without any regulatory authorization. The exchange clarified that the entity is neither a registered broker nor an authorised intermediary, and confirmed that a police complaint has already been filed.

According to the NSE, such operations are part of a broader rise in “dabba trading,” an illegal practice where trades are conducted خارج official exchange systems. Instead of actual stock transactions, bets are placed privately and settled in cash, creating a parallel, unregulated market with no transparency or investor safeguards. The exchange also identified other networks like “Tradeverse,” allegedly linked to Raju Bhai Solanki, and “Gurvinder Wealth,” run by Gurvinder Singh, both of which operate via apps and social media platforms offering stock tips and guaranteed profits without registration.

Regulators warned that participating in such schemes not only exposes investors to financial losses but also legal consequences under the Securities Contracts (Regulation) Act, 1956, which allows for penalties including imprisonment of up to 10 years and fines up to ₹25 crore. Investors trading through these channels also lose access to dispute resolution and grievance mechanisms provided by regulated bodies like the Securities and Exchange Board of India (SEBI). The NSE has urged investors to verify brokers through official platforms and avoid social media-based trading tips that promise unrealistic returns.

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