RBI Stands Firm: No Relief for Brokers on New Funding Rules

• The Reserve Bank of India (RBI) has no plans to reconsider new funding rules for brokers and proprietary traders.
• New rules, effective April 1, increase collateral limits for bank guarantees and prohibit banks from lending for proprietary trading.
• RBI Governor Sanjay Malhotra stated the rules were finalized after extensive discussion and consultation, emphasizing no changes are being considered.
• Brokerage firm shares declined last week due to fears of reduced profits and trading volumes under strict collateral conditions.
• RBI has sent recommendations to the government regarding the inflation targeting framework, with details undisclosed.