Dabba trading resurfacing in new digital forms: Sebi

New Delhi: Markets regulator Sebi Chairman Tuhin Kanta Pandey on Thursday stressed the need to strengthen investor protection, warning that unregistered advisory groups continue to lure individuals into unsafe trading channels and that dabba trading keeps resurfacing in new digital forms.

Addressing a regional investor awareness seminar organised by the BSE in Coimbatore, Pandey said the challenge has intensified in an age where misinformation spreads faster than facts. Fraudulent trading apps look convincing, digital profiles mimic legitimacy, and guaranteed-return schemes promise what no regulated market can offer.

Reiterating the seriousness of the threat, he noted that such "unregistered advisory groups lure individuals into unsafe trading channels, and dabba trading continues to reappear in new digital disguises". Such unregistered advisory groups and disguised dabba operations are not isolated incidents, but coordinated attempts to exploit investor trust, curiosity and aspiration.

This makes it essential, he said, to ensure that people do not fall prey to "deception disguised as opportunity". To counter this, Pandey emphasised that awareness must evolve into digital caution, informed scepticism and a habit of verification before taking any financial step.

Strengthening investor protection, he said, has therefore become a key priority for the regulator. As part of these efforts, Sebi has introduced a validated UPI handle framework to ensure payments are made only to authentic UPI IDs of Sebi-registered intermediaries. The Sebi Check feature has also been expanded, enabling investors to instantly verify the genuineness of bank accounts on the Sebi Investor website and the Saarthi mobile app.