In stock market terms, badla is a facility that allows:

The correct answer is Option (3) → the postponement of delivery or payment from one settlement period to another

Option (1) the settlement of each trade after some days from the date on which it takes place — Incorrect. Settling each trade some days after it takes place is rolling settlement, now on a T+2 basis.

Option (2) the transfer of shares from one demat account to another just like cash — Incorrect. Moving shares to another account just like cash is a benefit of dematerialisation.

Option (3) the postponement of delivery or payment from one settlement period to another — Correct. Badla is a carry forward system of settlement, used mainly at the BSE. It lets a party postpone delivery or payment to a later settlement period.

Option (4) the conversion of electronic holdings back into physical share certificates — Incorrect. Turning electronic holdings back into physical certificates is rematerialisation.