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Dabba Trading in India: Everything You Need to Know Before Investing
At the same time, informal and unregulated trading systems continue to attract some traders. One of the most commonly discussed is Dabba Trading.
The transaction may simply be a price-based agreement between the trader and operator.
This means the trader may receive no genuine ownership rights.
There may be no voting rights, dividends, corporate action benefits, or demat holdings associated with the trade.
6. Fraud Risk
Unauthorized markets can attract fraudulent operators.
A platform may initially process small withdrawals to build trust.
Once traders deposit larger amounts, withdrawals may be delayed or blocked.
In more serious cases, the entire platform may disappear.
How Dabba Operators Make Money
Operators may earn money in several ways.
Some charge brokerage fees on every transaction.
Others profit when their clients lose money.
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