Topic Details (Notes format)

Badla

Subject: Economy

Description

Badla is a financial practice in stock markets where investors carry forward their positions to the next settlement period by paying a fee. It was common in India before being banned in 2001. Example: An investor unable to sell shares due to a price drop could use badla to defer the sale until the next settlement, hoping for a price increase.

Summary

Badla allows investors to carry forward stock positions for a fee.