A man walks past the logo of the Bombay Stock Exchange (BSE) inside its premises in Mumbai, India, February 2, 2026. REUTERS
Feb 16 (Reuters) – Shares of Indian bourse BSE and brokerages dropped between 2% and 9.5% on Monday, after the country’s central bank tightened norms for bank lending to stock brokers and other market intermediaries.
On Friday, the Reserve Bank of India issued revised norms on banks’ lending to capital market participants, including higher collateral requirements for bank guarantees and a ban on lending for proprietary trading by brokers.
Jefferies said it sees BSE most affected by the new regulations on proprietary trading, which could result in a 10% earnings impact on the exchange operator.
Reporting by Nandan Mandayam in Bengaluru; Editing by Rashmi Aich
