Before the introduction of modern, standardized Futures & Options (F&O) trading in India, the served as a native form of leverage. It allowed retail and institutional traders to carry forward speculative trade positions to the next settlement cycle without taking actual delivery of the shares or paying the full transaction volume up front. The Journey from “Badla” to Derivatives - MISM
: Although a modified, "safer" version was briefly reintroduced, SEBI formally outlawed the system in July 2001 to make way for a more transparent Futures and Options (F&O) market. Legacy and Modern Context Farewell to the badla old days? - Euromoney index of badla