RBI Tightens Capital Market Norms: BSE, Angel One Shares Plunge Up to 10%

• Shares of BSE, Angel One, and Groww fell up to 10% after RBI issued amended directions on banks' capital market exposure.
• New norms, effective April 1, 2026, require banks to extend credit to SEBI-regulated brokers on a fully secured basis.
• Bank guarantees for exchanges/clearing houses need 50% collateral (25% cash); equity collateral faces a 40% haircut.
• RBI prohibits funding proprietary trading by brokers, though market-making and short-term debt warehousing can continue.
• Analysts predict moderation in trading activity, higher costs for brokers, and a potential 15-20% hit to F&O volumes.