AFTER a lengthy internal debate, the Indian finance ministry has decided that a futures and options market will replace the existing badla (contango) system.
The Securities and Exchange Board of India (SEBI), the watchdog of the stock markets, will soon be asked to finalise how and when the badla system can be abolished.
SEBI has already begun to educate investors and brokers about the futures and options market.
The finance ministry believes the transition will be smoother if the procedures were staggered.
A ministry source said: ''The badla system should be allowed to operate for about six months after futures and options are introduced.
''This will allow brokers and investors to familiarise themselves with the new system, which could initially be quite complicated for them.
