Brokers Warn: RBI Rules Could Cripple Stock Market Liquidity, Urge 6-Month Delay

• Brokers warn RBI's new bank funding rules could severely impact the Indian stock market if implemented now.
• Concerns include decreased market liquidity, higher trading costs, and potential impact on foreign investor participation.
• ANMI, a brokers' association, has requested a 6-month reprieve from the regulator to allow market adjustment.
• New rules tighten collateral requirements for bank guarantees and restrict bank funding for brokers' proprietary trading.
• Brokers fear an unequal situation where foreign firms have funding advantages, potentially shifting market share.