RBI Tightens Lending Norms for Brokers from April 1, 2026: Key Changes & Impact

• RBI to tighten bank lending norms for capital market intermediaries starting April 1, 2026.
• All credit facilities must be fully backed by eligible collateral with prescribed haircuts (e.g., 40% on listed equities, 15% on AAA-rated debt).
• Banks are prohibited from financing proprietary trading or investments by CMIs; funding is for working capital, settlement, margin trading, and market-making.
• The move is a "structural shift" for brokers, potentially moderating leverage and pushing proprietary desks to scale down or seek alternative funding.
• Aggregate capital market exposure caps remain at 40% of Tier 1 capital, with direct exposure capped at 20%.