These stocks relied heavily on financiers to provide liquidity.
Regulated financing mechanisms now exist to allow investors to leverage their positions, replacing the informal, risky financing of the Badla era. Conclusion index of badla exclusive
before the introduction of modern derivatives like Single Stock Futures (SSFs). Munich Personal RePEc Archive 2. Conceptual Framework of Badla These stocks relied heavily on financiers to provide
This created a unique phenomenon: a self-reinforcing bull run. As prices rose, more people bought on credit. To hold these positions, they paid Badla fees, injecting liquidity into the hands of financiers who would then lend it out again. It was a spinning top that remained upright only as long as the momentum of rising prices continued. replacing the informal