RBI Defers Capital Market Rules to July 1, Eases Broker Norms Amid Volatility

• RBI postpones new capital market exposure rules for banks to July 1, easing some conditions for brokers.
• Brokers can continue using bank guarantees backed by 50% margin until the new implementation date.
• Key proposals remain unchanged, despite industry requests for relief on intra-day funding and other norms.
• RBI eased capital adequacy norms for banks issuing payment commitments to stock exchange clearing corporations.
• Restrictions on lending to market makers and acquisition finance definitions were also modified.

Key Questions Answered

How will new RBI rules impact proprietary trading firms?

New RBI rules may increase capital costs and reduce profits for proprietary trading firms.

What changes for brokers regarding bank guarantees now?

Brokers can continue using bank guarantees with 50% margin until July 1, 2026. The RBI deferred new capital market exposure rules from April 1 to July 1, 2026.

Could this deferral stabilize volatile Indian markets?

The deferral of new capital market rules by the RBI to July 1, 2026, may offer some stabilization to volatile Indian markets.