RBI's New Rules Shake Stock Market: Brokerage Shares Plummet, Funding System Overhauled

• RBI's new rules, effective April 1, 2026, mandate 100% secured funding for stockbrokers, impacting their funding system.
• Shares of BSE and other capital market companies fell 2% to 10% on February 16 due to the tightened loan rules for brokers.
• Brokers must now provide 100% collateral for proprietary trading loans, and banks are prohibited from funding brokers' own security purchases.
• Jefferies predicts a significant impact on BSE, potentially reducing the exchange operator's earnings by approximately 10%.
• The changes aim to secure the banking system but could increase trading costs, reduce market liquidity, and make bank guarantees more expensive.