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23 Feb 2026
India’s new lending curbs seen squeezing trading firms
Summary
The Reserve Bank of India’s new rules, effective April 1, prohibit banks from lending for proprietary trading and require 100% collateral for other funding to brokers. This could significantly impact trading firms, especially smaller ones, by reducing profit margins and potentially forcing them to shut down. The rules aim to curb the explosive growth of India’s equity derivatives market, which has seen a large number of retail investors suffer losses.