What is a hawala charge?
Hawala is another important ingredient in Indian stockmarkets. The hawala rate is a making-up price at which buyers and sellers settle their speculative transactions at the end of the settlement period on any stock exchange. This becomes the basis for the investor (opting to carry-forward) to buy or sell during the next settlement. The hawala rate is the standard rate for settling and carrying forward the trade to the next settlement period. This price is significant for a speculative buyer or seller.
