Officially, financiers have nothing to worry as their trades are guaranteed by the exchange but in private deals financiers stand the risk of losing money if the market falls sharply and the counterparty is in trouble.

At the badla session held here yesterday, rates opened around 24 per cent level. As the demand for badla finance did not meet with adequate funds, the rates soared steadily to peak at 45 per cent by close of session. Marketmen were taken unawares by the sudden spurt as the rates in private badla deals were reported to be around 32 per cent.

An analysis of the badla trades shows that bulk of the badla volumes were recorded in four scrips-- Ranbaxy, Pentafour Software, Satyam Computers and ITC. The volume in Ranbaxy was the highest at 12,47,812 shares worth Rs 120 crore at current prices, followed by 1.82 lakh shares in Pentafour, 4.53 lakh shares in Satyam and 2.74 lakh shares in ITC.

Pentafour and Satyam have returned to the delivery list after being in no-delivery zone for the last couple of weeks. Marketmen said badla rates in private deals have now soared to over 50 per cent in the light of the developments in the official session.

Total badla volumes have been picking up steadily at Calcutta in the last few settlements. It touched about Rs 325 crore yesterday against Rs 280 crore plus in the preceding settlement.

A broker pointed out that at yesterday's session, most deals were executed at an average rate of 33 per cent although small parcels were traded in the range of 40-45 per cent towards close of session.

Most marketmen are of the view that such high rates are not sustainable and are bound to come down in the comingsettlements once funds supply, induced by the high rates, exceeds demand for badla.