Dabba trading

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Dabba trading is a term for a type of trading that was used in India, similar to the "bucket shops" in the U.S. Dabba means "cubicle." It was banned by the Securities and Exchange Board of India (SEBI) in January 2003. Dabba trading was essentially trading on the curb, where a buyer and a seller agreed on a certain price of a stock after trading hours. This unofficial agreement was converted into an official deal by putting the trade price and quantity simultaneously by the seller and buyer into the official system. Dabba trades were mostly recorded on the Bombay Stock Exchange (BSE) and other regional stock exchanges that had scant surveillance.[1]