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Badla finance

200282932-001Badla is a type of stock trading in which investor buys a stock  with the burrowed money of another investor or lender.At first the shares are kept with the lender,but they are handed over to the investor,as he pays back all the money to the lender including badla finance.Just like bank,money lender  charges a fixed amount of interest rate for his money which is called badla finance.The interest rate is determined by the demand and supply of the traded stock.

Badla was very popular in the sub-continental stock markets of India and Pakistan,but was banned in India in 2001,after future contracts were introduced in the market.

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About Emaad Qureshi