New Delhi, July 24 -- The Jane Street episode seems to have stirred some 20th century nostalgia, with badla trading-banned in 2001 after the Ketan Parekh scandal-posited as an answer to stock-market manipulation. Badla was an indigenous mix of cash and forward markets.
It allowed traders not to settle their trades within the timeframe they were meant to be settled on a cash basis, but carry them forward by paying a small badla fee for that benefit.
What replaced it was the global practice of using derivatives like futures and options (F&O), contracts that let traders hedge their bets or speculate on future price movements.
Also read: The data is clear: you should stop trading and invest in mutual funds instead
Fans of badla argue the ...
Click here to read full article from source
To read the full article or to get the complete feed from this publication, please
Contact Us.