Dabba trading

Dabba trading, also known as box trading or bucket trading, is an illegal practice of trading that takes place outside the purview of stock exchanges. Simply put, it is gambling centered around stock price movements.

In dabba trading, traders bet on stock price movements without incurring a real transaction to take physical ownership of a particular stock. This means that there is no actual buying or selling of shares, and no settlement of trades takes place. Instead, traders simply agree on the price of a stock and then pay or receive the difference in cash, depending on how the price moves.

Dabba trading is illegal in India under the Securities Contract (Regulation) Act, 1956. There are a number of reasons why dabba trading is illegal, including:

* It is not regulated by any government or financial institution, which means that there is no protection for investors.
* It is often used for money laundering and other illegal activities.
* It can create market volatility and instability.

If you are considering dabba trading, I strongly advise against it. It is an illegal and risky activity that could have serious consequences for your financial well-being.

Here are some of the risks of dabba trading:

* You could lose all of your money.
* You could be involved in illegal activities.
* You could be scammed.
* You could be prosecuted by the government.

If you are looking to invest in the stock market, I recommend that you do so through a legitimate broker or exchange. This will help to protect you from the risks associated with dabba trading and ensure that your investment is safe.