Multiple choice general knowledge

In India, what is the word used to describe the carrying forward of speculative transaction beyond the day of account into the next accounting period?

  1. Lagaan

  2. Hawla

  3. Badla

  4. None of These

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Badla is a Hindi term referring to the carry-forward of speculative trading positions from one settlement period to the next. This mechanism allowed traders to defer settlement by paying a charge. It was banned by SEBI in 2001. Lagaan refers to tax, Hawala to informal money transfer networks.