Boom in digital dabba trading

Much like illegal dabba trading, the platform itself is the counterparty to trades by the customer

In FY21, 10.7 million new demat accounts were opened by Indian investors. In contrast, only 4 million new accounts were added in the previous two years. But the action is not limited to the booming stock market; many unregulated trading platforms, especially in foreign currencies, are also thriving under the nose of our two financial regulators. Since the March 2020 lockdown, there has been an explosion in binary trading platforms that offer a derivative product called contracts for difference (CFD). These are being openly advertised and targeted, especially at Hindi-speaking people.

These platforms allow trading in currencies, international stock indices,