MUMBAI, SEPT 25: The carry-forward charges (Badla) on the Bombay Stock Exchange (BSE) flared up as a rise in outstanding positions coupled with shortage of funds provided the trigger. While the average rates were lower at around 27 per cent, deals were also stuck in the band of 21-36 per cent.Marketmen said they had not anticipated such a sharp rise in badla rates and there various plausible explanations on the spurt, doing rounds in the market. ``A number of deals were reported above 35 per cent. In the past, such high rates have never been sustained and resulted in only stray deals,'' said a broker. A section of the market attributed the low level of financing to information technology IPOs currently in the market.``Given the kind of returns IT IPOs have given on listing, lot of funds have moved out and are currently locked in these IPOs. There are issues like Compucom which closed only yesterday and Hughes Software, which is currently open. Players are investing heavily in these issues to corner atleast a chunk of shares,'' said a market player.``If you go by the records of the last three years, such high rates are a seasonal phenomenon in both March and September, considering yearly and half-yearly considerations. The money flows out of the system and there is shortage of funds,'' added a BSE broker.The badla rates were 22.5 per cent in the previous badla session on September 18. The net outstandings on the BSE were Rs 2682 crore, up by around Rs 180 crore from last week. The rise in net outstandings is partly attributed to the 140-point rise in Sensex during the week. The 30-share benchmark closed at 4758 points against previous week's close of 4618 points. The current round of elections was also reasoned to have made an impact on badla rates. ``There seems to be some big game going on. This will give a boost to equities on Monday,'' said another market player.
