TradeBazaar Accused of Running Illegal Dabba Trading App
The growing popularity of online trading has also seen a rise in unregulated platforms claiming high returns and easy money. Among these, apps like TradeBazaar have come under scrutiny for allegedly facilitating illegal dabba trading, a practice that bypasses official stock exchanges and regulatory oversight. In this article, we explore what dabba trading is, related risks, regulatory warnings, and what investors should know before engaging with such platforms.
What Is Dabba Trading?
Dabba trading refers to trading activities that occur outside legally recognised stock exchanges such as NSE or BSE. Instead of placing orders on the official exchange, the dabba operator records trades internally and settles them without actual execution in the market. This type of trading is illegal in India and operates outside the framework of regulatory oversight by SEBI.
Key Characteristics of Dabba Trading
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Trades are not executed on a recognised stock exchange.
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The operator settles profits and losses internally.
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No legal protection or grievance redressal if funds are lost.
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Platforms may advertise high returns or leverage to lure investors.
Are Apps Like TradeBazaar Illegal?
There is no official SEBI report publicly confirming TradeBazaar by name, but the model many such apps follow is consistent with illegal dabba trading operations — unregistered, unregulated, and prone to fraud. Platforms that claim guaranteed returns, operate outside SEBI‑registered broker networks, or discourage linking trades to actual exchange orders fall into this category.
Regulators have repeatedly stated that dabba trading is unlawful in India, and investors should avoid such schemes.
Regulatory Warnings from SEBI and NSE
SEBI’s Official Position
The Securities and Exchange Board of India (SEBI) has clearly stated that dabba trading is illegal, and dealing with entities offering such services violates securities regulations. SEBI continues to warn investors to remain vigilant and avoid unregulated trading operations.
NSE Cautions Investors
The National Stock Exchange has also issued repeated advisories against dabba trading, noting that unauthorized platforms promising high or guaranteed returns are prohibited by law and could lead to serious investor losses.
Risks of Investing Through Illegal Trading Apps
Financial and Legal Risks
Participating in unregulated trading schemes exposes investors to several significant risks:
Financial Loss:
Since trades aren’t placed on official exchanges, your investment could vanish with no recourse.
No Legal Protection:
Standard investor protection mechanisms don’t apply to dabba trading.
Potential Legal Trouble:
Engaging with illegal trading services can also draw scrutiny from law enforcement, especially if funds are routed through suspicious channels.
How to Identify Scam Trading Apps
: Warning Signs
Below is a table summarizing common red flags of illegal trading platforms:
| Warning Sign | What It Indicates |
|---|---|
| Promises of guaranteed high returns | Likely fraudulent |
| No SEBI registration | Illegal trading |
| No official exchange execution | Dabba trading |
| Heavy push via social media/WhatsApp | Marketing tactic |
| Complex withdrawal restrictions | Potential scam |
Steps to Protect Yourself
Best Practices for Investors
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Only trade through SEBI‑registered brokers.
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Verify that trades are executed on recognised exchanges.
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Be skeptical of platforms promising unrealistically high profits.
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Report suspicious activity to SEBI or the cyber police.
FAQs About Dabba Trading and Illegal Trading Apps
Is dabba trading legal in India?
No, SEBI and major exchanges have reiterated that dabba trading is illegal and unregulated. Investors are warned against using such platforms.
What happens if I lose money in a dabba trading app?
Since trades are not executed through official exchanges, there is usually no grievance redressal available through SEBI or exchange investor protection mechanisms.
How to check if a trading app is safe?
Look for SEBI registration, confirmed trade executions on recognised exchanges like NSE or BSE, and reviews from verified investors.
Can I report a scam trading app?
Yes — file a complaint with SEBI’s investor grievance cell or local cyber police if you suspect fraud.
Final Thoughts
The lure of quick money can sometimes blind investors to the risks of unregulated platforms. While apps like TradeBazaar may attract users through high returns and ads, they often operate outside the legal framework and pose severe financial and legal risks. Always prioritise regulated, transparent trading services and remain informed before investing your hard‑earned money.
If a platform is promising guaranteed or unusually high returns while operating off-exchange, it raises serious fraud concerns. Genuine trading platforms never guarantee profits. Investors should verify regulatory registration and avoid schemes that lack transparency.