Overview

• SEBI has formally notified Navbharat over its July 13 ad promoting Trade Dost’s illegal dabba trading scheme and lodged a cyber police complaint against the entities involved
• The National Stock Exchange has issued new investor cautions warning the public to avoid unregistered operators offering off-exchange trading services
• Regulators have referred the case to the Advertising Standards Council of India to assess potential breaches of advertising guidelines in the full-page newspaper ad
• Dabba trading operates outside recognized exchanges and violates the Securities Contracts (Regulation) Act, the SEBI Act, and the Bharatiya Nyaya Sanhita by settling speculative stock bets in cash
• Investigations trace the scheme’s roots to Nagpur and Shahdara, Delhi, with operators now using UAE numbers and social media channels to recruit retail investors