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Presentation on  BADLA SYSTEM BY VIDYADHAR PANDEY
The "carry forward" activities are mixed together with the spot market ,[object Object],[object Object]
WORKING OF BADLA SYSTEM The stock exchange acts as an intermediary between you and the actual lender. You will be charged an interest rate for borrowing, which will be determined by the demand for that stock under badla trading
Thus, higher the demand for Infosys under badla trading higher will be the interest rate. You can keep your borrowing unpaid for a maximum of 70 days, after which you will have to repay the badla financier through the exchange
HISTORY OF BADLA TRADING The Joint Parliamentary Committee on Irregularities in Securities and Banking Transactions, 1992 (JPC of 1992) discussed the irregularities of badla SEBI issued a directive in December 1993 prohibiting the carry forward of transactions.
However it was recommended by the G.S PATEL COMMITTIE in the year 1995 and the carry forward transaction in the security market were permitted It was further modified by the J.R VARMA COMMITTIE in the year 1997 ,[object Object]
50 % of which was to be paid in advance
forward trading limit was fixed for 20 crores,[object Object]
Comparission between badla and future
Presentation On  Badla System

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Presentation On Badla System

  • 1. Presentation on BADLA SYSTEM BY VIDYADHAR PANDEY
  • 2.
  • 3. WORKING OF BADLA SYSTEM The stock exchange acts as an intermediary between you and the actual lender. You will be charged an interest rate for borrowing, which will be determined by the demand for that stock under badla trading
  • 4. Thus, higher the demand for Infosys under badla trading higher will be the interest rate. You can keep your borrowing unpaid for a maximum of 70 days, after which you will have to repay the badla financier through the exchange
  • 5. HISTORY OF BADLA TRADING The Joint Parliamentary Committee on Irregularities in Securities and Banking Transactions, 1992 (JPC of 1992) discussed the irregularities of badla SEBI issued a directive in December 1993 prohibiting the carry forward of transactions.
  • 6.
  • 7. 50 % of which was to be paid in advance
  • 8.