Sebi Bans Badla From July 2
The Securities and Exchange Board of India today decided to ban badla and other deferral products with effect from July 2.
The decision was taken at the Sebi board meeting today and announced after market hours. Talking to reporters after the meeting, Sebi chairman DR Mehta said the decision to enforce the ban on badla was taken unanimously.
The capital market watchdog has given brokers time till September 3 to liquidate all their deferred positions in the current settlement. No deferred positions will be permitted from July 2 and any additional deferred positions taken on or after May 15 will also have to be liquidated by July 2.
Further, all price bands on individual scrips stand removed from July 2 while a new scheme of market-wise circuit breaker will be announced by Sebi soon.
From July 2, which for all practical purposes can be taken as the last date for deferral products, options on individual scrips will be allowed. Initially, 14 scrips will be available for options contracts. The identity of the scrips will be revealed later