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The Hawala Rate (in this specific trading context) referred to the official settlement price or "making-up price" determined by the stock exchange at the end of a settlement period. All carried-forward transactions were revalued against this benchmark price, serving as the foundational floor for calculating the exact outstanding Badla charges. 3. Badla vs. Modern Index Derivatives
The "Index of Badla" was not a formal statistical index like the SENSEX or NIFTY. Instead, it referred to the determined during a dedicated trading session at the end of each settlement cycle (usually every Friday or Tuesday). index of badla
Here's how it typically worked:
The system functioned through two primary types of transactions: The Hawala Rate (in this specific trading context)
Since the pure index is rare, use these proxies: Badla vs
Badla was essentially a repo transaction, enabling speculative trading with borrowed money. This system was born in the 19th century on the Bombay Stock Exchange to combat a chronic lack of liquidity. It was a double-edged sword, providing immense liquidity but at the cost of high systemic risk.