Domestic prop trading firms face higher funding costs under RBI's new rules
Published on: July 9, 2026, 6:24 a.m. | Source: The Economic Times
New Reserve Bank of India lending rules increase funding costs for local proprietary traders. These changes require 100% collateral for bank guarantees, impacting domestic firms significantly. Foreign trading majors, however, can access cheaper overseas funding sources. This situation may allow foreign firms to capture a larger domestic market share. Domestic traders face a disadvantage compared to their well-capitalized international competitors.
