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2026-02-16 19:37:37
[India Further Tightens Trading Regulations, Brokerage Stocks Plunge] ⑴ On February 13, the Reserve Bank of India announced that all bank credit facilities provided to brokerage firms must be fully guaranteed, and banks are prohibited from providing loans to brokerage firms for their proprietary securities purchases, including proprietary trading. ⑵ Affected by the new regulations, the share prices of capital market-related companies listed in Mumbai fell by as much as 9% on February 16. Exchange operator BSE fell by 9%, while brokerages such as Groww's parent company Billionbrains Garage Ventures, Motilal Oswal, and Angel One saw declines between 1% and 7%. ⑶ Breakingviews columnist points out that, coupled with previous tax increases, this indicates India's keen interest in curbing excessive risk-taking in the $1.4 trillion options market, and further actions are expected in the future.
