India, Oct. 21 -- The Bombay High Court recently ordered the release of three city residents, observing that they had been charged under the wrong penal sections for allegedly running a 'dabba trading' racket, which involves illegal trading in securities.

The accused-Viral Parekh, Sohanlala Kumawat, and Jigar Sanghvi-were arrested on October 6 following a raid at a flat in a Kandivali West housing society in an operation carried out by the crime branch in collaboration with officers from the National Stock Exchange (NSE).

According to the police, Kumawat and Sanghvi were involved in dabba trading at the direction of Parekh. The trio is accused of using a website to execute illegal transactions on behalf of at least 22 clients. They were...