Securities and exchange board of india
The stock market regulator SEBI has once again warned investors that the box business is completely illegal. SEBI has clearly stated that investors should not transact from any such unit which is illegally providing business services. In fact, last week, an advertisement related to a box business was printed in a newspaper, which SEBI has taken seriously.
SEBI takes strict steps
After printing Ed of Dabba Trending in the newspaper, SEBI has started immediate action in this matter. The regulator has written a letter to the newspaper expressing concern, in which the advertisement promoting the box was printed. SEBI says that such advertisements not only promote illegal activities, but also mislead investors. Along with this, SEBI has filed a complaint with the cyber police and demanded strict legal action against the advertising unit.
NSE also warned
The National Stock Exchange (NSE) has also advised investors to be careful in this matter. NSE has said that investors should do business only through SEBI-Penked Broker and recognized stock markets. NSE reiterated the dangers of dabba business and said that involvement can cause huge loss to investors.
Questions on advertising standards also
SEBI has also raised the matter in front of the Advertising Standards Council of India (ASCI). The regulator has demanded ASCI to check violation of the standards of this advertisement and take necessary corrective steps. SEBI says that such advertisements work to wander investors and damage the credibility of the market.
SEBI advised investors
SEBI has appealed to investors not to be cautious and do not transact with any unit that is offering illegal business services. SEBI said, we are fully committed to protect the interests of investors. For this, we are working closely with regulatory measures, awareness campaigns and law implemented agencies. Investors have been advised to invest only through Sebi-regulated broker and recognized stock exchanges.
What is a box business?
Dabba business means illegal trade done out of the stock market and without any regulatory monitoring. This business is outside the scope of recognized stock exchanges. According to SEBI, such activities pose a big risk for investors. This not only threatens investors’ money, but it also violates several provisions of the Securities Contracts (Regulation) Act, 1956, SEBI Act, 1992 and Indian Justice Code, 2023.