SEBI Acts Against Navbharat Ad Promoting Illegal Dabba Trading

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  • Last Updated on 23 July, 2025

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SEBI Action Against Dabba Trading

PR No.44/2025, Dated: 21.07.2025

The Securities and Exchange Board of India (SEBI) has taken strict regulatory action in response to an advertisement published in the Navbharat newspaper dated July 13, 2025, which was found to be promoting illegal dabba trading activities.

1. Formal Communication Issued to Navbharat

SEBI has issued a formal communication to the publisher of Navbharat, raising serious concerns over the publication of content that encourages unlawful trading practices. The advertisement in question potentially misleads investors and poses a threat to the integrity of the securities market.

2. SEBI’s Stand on Dabba Trading

Dabba trading—unregulated, off-market trading outside the purview of recognised stock exchanges—is strictly prohibited under Indian securities law. SEBI has consistently cautioned investors and intermediaries against such practices, which bypass regulatory oversight and expose investors to fraud and risk.

3. Complaint Lodged with Cyber Police

In addition to regulatory action, SEBI has also filed a complaint with the cyber police, seeking:

  • Appropriate legal action against the entity that placed the advertisement
  • Investigation into other entities potentially involved in the illegal activity

This reflects SEBI’s intent to collaborate with law enforcement agencies to curb financial crimes and protect investor interests.

4. Conclusion

This development reinforces SEBI’s zero-tolerance approach towards dabba trading and its commitment to ensuring a fair, transparent, and regulated securities market. Investors are advised to remain vigilant and engage only with SEBI-registered intermediaries operating through recognised stock exchanges.

Click Here To Read The Full Press Release

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied