Illegal Dabba Trading Ad in Navbharat
• Dabba Trading Ad Sparks SEBI Action
• Navbharat Promotes Fraud, SEBI Reacts
• Fake Trading Ad Triggers Probe
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
SEBI has taken regulatory action against Hindi daily Navbharat for publishing an ad promoting illegal dabba trading on 13 July 2025. The ad violated key financial laws, prompting SEBI, NSE, cyber police, and ASCI to launch a multi-agency probe. SEBI emphasized investor protection and media responsibility in financial advertising.
SEBI Cracks Down on Navbharat Over Illegal Dabba Trading Ad
NSE, Cyber Police, ASCI Join Probe Into Investor Risk Violation
India’s capital market regulator, the Securities and Exchange Board of India (SEBI), has launched a multi-agency investigation into a controversial advertisement published by the Hindi daily Navbharat on 13 July 2025, which promoted illegal dabba trading activities. The ad has raised serious regulatory and legal concerns, prompting SEBI to act swiftly in collaboration with the National Stock Exchange (NSE), cyber police, and the Advertising Standards Council of India (ASCI).
Dabba trading refers to unregulated off-market transactions that operate outside the oversight of SEBI and recognized stock exchanges. These unauthorized trades not only flout financial laws but also put investors at high risk, offering no legal protection in the event of fraud or dispute. SEBI has clearly stated that such practices violate the Securities Contracts (Regulation) Act, 1956 (SCRA), the SEBI Act, 1992, and relevant provisions under the Bhartiya Nyay Sanhita, 2023.
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NSE Issues Investor Alert; SEBI Lodges Complaint with Cyber Police
Entities Behind the Ad May Face Criminal Action
Following SEBI’s regulatory red flag, the NSE quickly issued a public investor warning against dabba trading, urging the public to avoid any trading avenues not registered with SEBI. The warning listed specific entities named in the Navbharat advertisement and advised investors to rely only on SEBI-registered brokers and recognized stock exchanges.
Simultaneously, SEBI filed a formal complaint with the cyber police, requesting that legal action be initiated against the advertiser and any collaborators involved in promoting the illegal trading service. According to sources accessed by the Sprouts News Investigation Team (SIT), authorities are examining possible violations under both financial laws and the Information Technology Act.
The matter has also been referred to the Advertising Standards Council of India (ASCI) for review. SEBI has asked ASCI to determine whether Navbharat breached advertising guidelines by publishing material that promotes financial misconduct and to recommend appropriate corrective measures.
SEBI Emphasizes Responsible Media Practices in Financial Advertising
Sprouts SIT Links Incident to Broader Pattern of Non-Compliant Ads
In its official statement, SEBI reiterated its zero-tolerance stance on illegal dabba trading and underlined its ongoing efforts to safeguard investors through public awareness, strict regulatory enforcement, and inter-agency coordination. The regulator urged the public to remain vigilant and steer clear of schemes that promise easy gains through unregistered or underground trading setups.
This is not the first time media houses have come under fire for failing to vet financial advertisements. The Sprouts News Investigation Team (SIT) has earlier reported instances where dubious schemes were promoted through print media without adequate checks. Financial regulators are now increasingly holding publishers accountable for irresponsible content that can directly harm investor interests.
SEBI stressed that media due diligence is critical, especially when publishing ads related to financial products, trading services, or investment opportunities. Media platforms must ensure they are not inadvertently enabling fraudulent financial operations or breaching regulatory protocols.
Navbharat Faces Mounting Scrutiny Amid Prior ED Investigations
SIT Notes Pattern of Violations Across Financial and Legal Fronts
This latest controversy adds to a series of ongoing regulatory concerns surrounding Navbharat. As previously reported by Sprouts SIT, the newspaper group and its promoters are already under the scanner of the Enforcement Directorate (ED) for alleged tax evasion and creation of shell companies. Investigators have flagged over 17 dummy firms linked to the group, reportedly used to siphon profits and avoid statutory obligations.
The dabba trading advertisement, published without apparent due diligence, reinforces questions about Navbharat’s editorial standards and compliance culture. Regulatory insiders suggest that repeat violations by media outlets could lead to more stringent content liability frameworks under SEBI and ASCI’s joint oversight.
Investor Protection Demands Accountability at All Levels
SEBI’s decisive action highlights the importance of a collaborative enforcement model involving regulators, exchanges, cyber authorities, and media watchdogs. The crackdown on Navbharat’s advertisement marks a key moment in the fight against illegal trading ecosystems and unregulated financial promotions.
The Sprouts News Investigation Team (SIT) will continue to monitor developments closely as SEBI, NSE, and law enforcement agencies deepen their investigations. With investor safety at the core, this case may serve as a precedent-setting moment for advertising accountability in the Indian financial landscape.
Inside the Navbharat Scandals: A Trail of Violations
Navbharat’s credibility is under serious question as multiple misconduct allegations emerge against its management, including owner Nimish Maheshwari, who is under scrutiny for alleged fraud.
Also Read: SBI Labels Anil Ambani Fraud in ₹3,000 Cr RCom Loan; CBI Action Likely.
Shell Companies of Navabharat Under ED Scanner: Massive Tax Evasion Uncovered
Sprouts News Investigation Team (SIT) has exposed yet another serious scandal involving the Navabharat Group, revealing the creation of over 17 shell companies used to evade taxes amounting to crores annually. As per Sprouts SIT’s exclusive investigation published on October 19, 2022, these companies were reportedly set up only on paper to siphon profits from the parent company—Navabharat Press Ltd., owned by Vinod Ramgopal Maheshwari—in a clear attempt to understate earnings and avoid statutory financial obligations.
According to the report, the Enforcement Directorate (ED) has begun probing the allegations after a formal complaint, and multiple shell entities linked to the group may face seizure or criminal proceedings soon. Companies flagged in the report include: Navabharat Real Estate Pvt. Ltd., Navabharat Infraventures, Saffron Industries Ltd., Binoba Paper Craft Ltd., and Navabharat Media Network, among others.
The directors named across these entities include Nimish Maheshwari, Sriranga Maheshwari, Anupama Maheshwari, Vaibhav Maheshwari, and others—all closely connected to the Maheshwari family and management.
The Sprouts SIT also linked Navabharat to earlier scandals, including the CIDCO land allotment scam in Sanpada (Navi Mumbai) and MHADA quota frauds in Mumbai’s Powai area. In connection with a pending wage board case, the Thane Labour Court has demanded balance sheets of these companies—documents the Navabharat management has so far refused to submit.
This ongoing pattern of fraud, concealment, and regulatory defiance raises serious questions about the integrity of the Navabharat media group.
