During his two day-visit to the state, the chairman of Securities and Exchange Board of India (Sebi) UK Sinha expressed concern over the “worrying levels” of “Dabba Trading” or illegal trading that is happening in Gujarat and added that the market regulator will tackle the illegal activity in the state with an iron hand.
Sinha was in Rajkot to meet and address the concerns of entrepreneurs connected with the MSME sector in the state. “I also had a meeting with brokers from Rajkot and there is one thing that has been brought to my notice. It is a matter of concern that dabba trading is rampant in Rajkot and neighbouring areas. We are concerned about it and We are going to act strictly against them in collaboration with the state government, police department and with the new powers vested in us.”
Dabba trading is an illegal and parallel activity, where shares of a company are traded bypassing the stock exchanges, free of all rules and regulations. The dabba operator’s office is like any other broker’s office having terminals linked to stock exchanges showing market rates of stocks.
