Bse, Nse Warn Over Unofficial Badla

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have warned against the use of unofficial badla to carry forward positions and have issued statements in this regard. The Securities and Exchange Board of India (Sebi) has banned it long back and such transactions are termed as illegal.

The exchanges were responding to reports that some market participants were engaging in unofficial badla through private funding.

The exchanges said disciplinary action would be taken against those indulging in this activity and disputes arising from such transactions would not be covered by the guarantee mechanism of the stock exchanges or the investor protection fund.

 

BSE in a release said that there have been reports in a section of the press that some of the market participants may be engaging in unofficial badla through some form of private funding. It is understood that this mechanism is utilised to enable participants to carry forward their positions.