The Mumbai Crime Branch uncovered a major illegal stock trading scam and arrested four defendants from Ghatkopar in this case. A review of the computer systems of the four defendants in the presence of senior officials of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) revealed that in the past seven months they were suspected of illegally carrying out a value of 684.0 million.
The rupee is outside the legal system of BSE and NSE. The police suspected that the defendant repeatedly evaded taxes and caused tens of millions of rupees to the government’s finances. The police said that the four suspected illegal stock traders also used the Hawala channel for fund transactions. According to the police, illegal stock trading — commonly referred to as “dabba trading” — is an unauthorized market that has its own trading laws and legislation.
This is the process by which the broker routes clients to trade outside the stock exchange. The bucket serves as an operator, away from crowded business areas. Daba trading is also carried out through various applications, which are used to buy and sell stocks in the illegal market. With the help of the software, transactions occur all over the country.
News Source : Hindustan Times
