The RBI has tightened bank lending norms for stock brokers, curbing proprietary trading funding and imposing stricter collateral rules for margin financing. Effective April 1, 2026, the move aims to reduce excess leverage in derivatives markets and strengthen financial stability. Broker and exchange stocks fell sharply following the announcement, with concerns over lower trading volumes and tighter liquidity. While long-term investors may see limited impact, F&O traders and margin users could face higher costs and stricter risk checks. Here’s what the new rules mean for markets, brokers, and retail investors.
RBI Tightens Bank Lending Norms For Brokers – Why Derivatives Volumes May Come Down | Explained
