A growing number of retail investors looking for quick profits are being drawn into illegal trading networks—and the National Stock Exchange of India (NSE) has now issued a fresh warning that highlights just how risky this trend has become.
In its latest advisory, the exchange has flagged a Telegram channel called “Online Dabba Trading” for offering stock market tips, “assured returns,” and even account-handling services—none of which are legally permitted in India’s regulated securities market.
The red flag: “Guaranteed returns” in stock markets
For many new investors, especially those entering the market post-pandemic, the promise sounds tempting:
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Assured profits -
Expert-managed accounts -
Quick gains without effort
But here’s the reality:
No legitimate stock market investment can guarantee returns.
The NSE has clarified that:
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The entity behind this channel is not registered as a broker or authorised person -
It is offering illegal dabba trading services -
A police complaint has already been filed
What is dabba trading—and why it’s dangerous
Dabba trading operates outside the formal exchange system. Instead of executing trades on official platforms:
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Bets are placed privately -
No real shares are bought or sold -
Profits/losses are settled in cash
This creates a parallel, unregulated market where:
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There is zero transparency -
There are no safeguards -
The entire system depends on trust in an unknown operator
The expanding web of illegal trading schemes
The latest warnings go beyond anonymous Telegram groups and point to named operators:
1. “Tradeverse” dabba trading network
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Linked to an individual identified as Raju Bhai Solanki -
Operating via website, mobile app, and direct contact -
Offering illegal dabba trading services -
Not registered with the exchange in any capacity
2. “Gurvinder Wealth” social media network
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Run by Gurvinder Singh -
Active across WhatsApp and YouTube channels -
Offering: -
Stock tips -
Guaranteed returns -
Account handling and portfolio services -
Also not a registered broker or authorised entity
These cases highlight a pattern:
Unregulated entities are increasingly using apps, social media, and direct messaging to mimic legitimate financial services.
This isn’t just risky—it’s illegal.
Under the Securities Contracts (Regulation) Act, 1956 (SCRA):
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Violations can lead to: -
Up to 10 years imprisonment -
Fines up to ₹25 crore -
Or both
Additionally:
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These offences are cognizable, meaning police can directly investigate -
Dabba trading may also attract charges under the Bharatiya Nyaya Sanhita, 2023
In short:
You’re not just risking money—you could be stepping into legal trouble.
The biggest catch: You’re completely unprotected
Perhaps the most critical part of the NSE warning is what investors won’t get if things go wrong.
If you trade through such illegal platforms, you lose access to:
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Exchange dispute resolution -
Investor grievance redressal mechanisms -
Any form of regulatory protection
That means:
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No complaints system -
No recovery mechanism -
No accountability
You are entirely on your own.
Why these scams are rising
The surge in such schemes is linked to a broader trend:
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A wave of first-time investors entering markets -
Increased use of Telegram, WhatsApp, and social media for financial tips -
A desire for fast returns in volatile markets
Scammers exploit this by:
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Using trading jargon to sound credible -
Showing fake profit screenshots -
Offering “managed accounts” to reduce investor effort
How to protect yourself
The NSE has advised investors to verify brokers using its official “Find a Stock Broker” tool before investing.
Basic rules to stay safe:
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Never trust “guaranteed returns” -
Avoid sharing trading access with anyone -
Only use SEBI-registered brokers
Stay away from Telegram/WhatsApp tip groups