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Carrying forward of transaction form one settlement period to the next without effecting delivery or payment.
A stock market based financing mechanism used for financing the weekly trading positions of equity buyers. These transactions involve the investment of funds through an equity purchase transaction, and a matching sale transaction one week later. Also known as a carry over transaction (COT), and similiar to contango in the UK market.
rate This is the rate of interest paid on funds used for financing the margin requirement for stocks, which are carried forward from one settlement to another settlement. Seedha badla: or forwardation, namely carry forward of overbought shares from one settlement to another. Undha badla: backwardation or carry over of oversold shares from one settlement to another.
Same as Carry Forward Trading.
Badla was an indigenous carry-forward system invented on the Bombay Stock Exchange as a solution to the perpetual lack of liquidity in the secondary market. Badla were banned by the Stock Exchange Board of India (SEBI) in 1993 (effective March 1994), amid complaints from foreign investors, with the expectation that it would be replaced by a futures-and-options exchange.Alexander Balfour. February 1995.
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