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Share Market Terms , Definition and Meaning - Alphabetical LISTING - A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, Y, Z
Havala or Hawala (also, Making Up Price) The rate fixed by the stock exchange for the purpose of working out the liabilities between member – brokers at the end of the SETTLEMENT PERIOD in respect of unfulfilled contracts in specified securities which are to be carried over to the subsequent period. If members were to try and individually settle all carry over accounts, there would obviously be considerably confusion due to the larger number of transactions at varying prices they may have entered into. As such, for determining the liabilities of members via – a – vis the unfulfilled contracts, the stock exchange decides a rate for each specified share, known as the havala rate, or making – up price. The havala rate is generally fixed at the level of the closing price of the share on the last working day of the settlement period.
Havala also means illegal trade in currency exchange, it involves selling of foreign currency at black – market rates; also clandestine transfer of foreign exchange abroad in lieu of Indian currency paid here.
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Share Market Terms , Definition and Meaning - Alphabetical LISTING - A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, Y, Z
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