⚠ BETA — all market data shown (deals, filings, prices, indices) is demo / illustrative, not live trading data. For evaluation only; verify before acting.
June 14, 2026
The Dispatch

Definition

Dabba Trading

Dabba (bucket) trading is illegal off-exchange betting on stock prices that bypasses the formal market, exposing participants to fraud and legal risk.

In dabba trading, an operator takes your buy/sell 'positions' on stocks without routing them to the NSE/BSE, you are simply betting on price moves off the books. It evades STT, stamp duty, and regulation, but offers no investor protection.

Dabba trading is illegal in India and prosecuted by SEBI and the exchanges. Participants risk total loss if the operator absconds, have no recourse via SCORES or the Investor Protection Fund, and may face legal consequences themselves. It is best avoided entirely.

Related terms

  • SEBISEBI is the Securities and Exchange Board of India, the statutory regulator of the securities markets, protecting investors and overseeing exchanges, intermediaries and listed companies.
  • Investor Protection Fund (IPF)The IPF is a fund maintained by exchanges to compensate investors in case a broker defaults or fails to meet its obligations.
  • Securities Transaction Tax (STT)Securities Transaction Tax is a small tax levied on the purchase and sale of securities like listed shares and derivatives on Indian stock exchanges, collected at the time of trade.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.