Dabba Trading in India: Everything You Need to Know Before Investing

A profit shown on a dashboard therefore does not necessarily mean the money is safely available.

Is Dabba Trading the Same as Intraday Trading?

No.

Intraday trading itself is not illegal when it is conducted through a registered broker and recognized exchange.

Intraday traders buy and sell positions within the same trading day.

The key issue is not how long a position is held.

The important question is where and how the trade is executed.

If the trade goes through authorized market infrastructure, it is fundamentally different from an off-market dabba arrangement.

Safer Alternatives for Investors

Investors interested in active trading have several regulated alternatives.

They can use SEBI-registered brokers to access:

• equity delivery,
• intraday trading,
• futures,
• options,
• ETFs,
• mutual funds,
• commodities,
• and other permitted financial instruments.