India's new lending curbs seen squeezing trading firms - Reuters
India's new lending curbs seen squeezing trading firms Reuters
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Notable Quotes
"Domestic proprietary trading firms fear that their business model has been rendered obsolete."
— executive at a domestic mid-sized proprietary trading firm , Executive
"Large firms may still have some of their own capital to deploy but this will impact their growth prospects."
— head of a large domestic high frequency trading (HFT) firm , Executive
"Domestic proprietary trading firms fear that their business model has been rendered obsolete."
— unknown executive , Executive
"Large firms may still have some of their own capital to deploy but this will impact their growth prospects."
— head of a large domestic high frequency trading firm , Executive
Key People
An unnamed executive expressing concerns about the impact of lending curbs on proprietary trading firms.
The head of a large domestic high frequency trading (HFT) firm.
An anonymous head of a domestic HFT firm commenting on the effects of new lending regulations on growth prospects.
Mumbai-based brokerage firm expressing concerns over the impact on smaller proprietary trading firms.
Executive director at the Securities and Exchange Board of India.
Whole-time director at the Securities and Exchange Board of India.
Chairman of the Securities and Exchange Board of India.
An executive at a domestic mid-sized proprietary trading firm.
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<a href="https://news.google.com/rss/articles/CBMiyAFBVV95cUxQbThqVGFqUW9Xb3YxbWhQa29PRXcwTlh6dG9TZVVwTWUyMDY4b1Y5YnpuX1hvRXloYWxiZHgycmt3aDRfTnVGOWhPYy0waVg1OXl2ZUFwd2x5anhvM21aSXpaYmdSd2lpTnZneGZfYTVOUUFGbkNWYlNSWktrcVdOdXBLVlNvZEhmRDNpWl9IUngzM215a1BrUW1IUFFleVhEck5rcGVBenl4NTNCNGJtUkFvR2cwRllPZW5saTZMOXFqUW9YZlRCUA?oc=5" target="_blank">India's new lending curbs seen squeezing trading firms</a> <font color="#6f6f6f">Reuters</font>
Starting April 2026, the Reserve Bank of India will ban banks from giving loans to proprietary trading firms, targeting risky levels of borrowing in India's booming derivatives market, which makes up a huge chunk of all trades on the National Stock Exchange.
The Reserve Bank of India's new rules, effective April 1, prohibit banks from lending for proprietary trading and require 100% collateral for other broker funding, potentially halving profit margins and reducing derivative trading volumes by up to 20%.
The Reserve Bank of India's recent amendments to credit facilities regulations, effective April 1, 2026, introduce significant changes, including a prohibition on bank funding for proprietary trading, mandatory 100% collateralization of all credit facilities to capital market intermediaries, and a minimum 40% haircut on equity collateral, fundamentally altering the economics of trading and brokerage in India.
The Reserve Bank of India's new rules, effective April 1, prohibit banks from lending for proprietary trading and require 100% collateral for other broker funding, potentially halving profit margins and reducing derivative trading volumes by up to 20%.
The Reserve Bank of India's new rules, effective April 1, prohibit banks from lending for proprietary trading and require 100% collateral for other broker funding, potentially halving profit margins and reducing derivative trading volumes by up to 20%.
The Association of NSE Members of India (ANMI) has formally petitioned the Securities and Exchange Board of India (Sebi) to delay the implementation of the Reserve Bank of India's new 100% cash collateral rule on bank guarantees by six months, expressing concerns over its potential impact on proprietary trading and market liquidity.
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