India curbs loans to brokers in blow to trading volumes - News Summed Up

India curbs loans to brokers in blow to trading volumes


India curbs loans to brokers in blow to trading volumesBloombergThe Reserve Bank of India’s (RBI) tightened rules for loans taken by firms that undertake proprietary trading in shares and commodities, and offer leverage to clients, the latest measure aimed at reducing speculative market activity in the South Asian nation. Photo: ReutersThe stricter measures would raise the cost of raising capital by proprietary trading firms and squeeze profits. While Indian banks traditionally do not directly finance proprietary trading, the directive closes a loophole that allowed short-term working capital loans given by banks to be diverted for trading by brokers. The new rule would narrow the type of securities trading firms can offer as collateral to banks. The central bank also tightened lending rules for margin trading facility under which stock brokers offer leverage to their clients.


Source: Taipei Times February 15, 2026 17:15 UTC



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