I found this article on another group which offers an insight in to Dabba
Trading or Bucketing. The interesting part is that while dabba trading is
illegal, it almost always involves THE BROKER. The article goes on to show
how brokers or sub-brokers flout Sebi rules, by embedding programs in the
software that automatically creates a reverse trade, and depending on
whether the position is covered or not, the trade is countered accordingly.
Often when trading on proprietary software of brokers, some trades get an
NSE confirmation and some do not. The ones that do get get a confirmation
are most likely to be dabba trades.

Do read this article.

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Attachment: Dabba Trading.pdf
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