Thursday , October 28 2021

Cops crack hoax share trading bolt in Chittorgarh, 4 arrested

Udaipur : In a major crack down on hoax share trading popularly known as ‘Dabba karobar’ Chittorgarh police has arrested 4 persons and seized sophisticated gadgets including laptops, mobile phones,  computers and hard disk along with documents indicating transactions worth crores of rupees of shares buying and selling in the grey market. 

The cops had been tipped of a hoax share trading company dealing in commodities and shares in GandhiNagar of Chittorgarh city. The operations were being done from a house behind magistrate colony. A team led by Sadar SHO Navneet Bihari Vyas raided the house and found four operators handling the share transactions for their clients. The police found three computer monitors,  CPUs, and two laptops that were linked with the online share market. The operators were receiving calls continuously and jotting down buying and selling of shares of various companies as per the directions of the clients, however,  the purchase and sell was completely hoax and not the actual one as done by registered share brokers. 

Cops arrested KusumKant, Sachin Chouhan, Prateek Rao and Rahul Jain who told the police that they were mere salaried employees who worked for one Sandip Sethia.A case has been registered under section 420, 120-b of the IPC and various provisions under the Forward Contract Trading Regulation Act,  IT Act etc. 

“Primary investigations reveal that Sethia has been operating a parallel stock exchange or Dabba business wherein clients had been making huge investments in purchase and sale of enquity, commodity and agricultural derivatives. The transactions were not being punched on the real exchanges. Sethia had been doing the Dabba business for some 10 years now and had an average turnover of 5 crore rupees transaction in a day. The illegal dabba business had been causing lakhs of rupees of loss to the government by means of Security Transaction Tax, service tax and education cess evasion.

Dabba trading 

Dabba is nothing but hoax trading or fake transactions. If an investor wanted to bet on shares for Rs 100, in dabba trading the trades would not be formally executed at all! The broker would, on behalf of his customer, execute the trade off the market.This meant the investor would simply bet on that scrip at a particular price point. If the price point rose, the customer would gain and get the difference between quoted price and the price point, and if the price fell, he would lose and shell out the difference.

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