Forward trading urged for India
THE presidents of some of India's largest stock exchanges have urged the Ministry of Finance and the Securities and Exchange Board of India (SEBI) to re-introduce badla, or forward trading in shares, in one form or another.
The call came days after SEBI chairman Suresh Shankar Nadkarni, who had imposed the ban, died on January 31.
At a specially called meeting in Bombay, the exchange chiefs requested the regulatory authorities to return to the old system of a fortnightly settlement in the non-specified (or cash) group, from the present weekly system.
Mr Nadkarni imposed the ban in mid-January last year. It has remained despite substantial pressure exerted by the stockbroking community for its return.
Ironically, the death of Mr Nadkarni may have given the stock exchange chiefs a chance to press for the re-introduction of badla.
Bhagirath Merchant, president of the Bombay Stock Exchange (BSE), said: 'We also need people to have easier access to bank finance against shares. The stipulation that the shares must be transferred to the lending bank's name must be removed.'