RBI Tightens Broker Funding Norms, 100% Collateral Mandatory From April 2026; No Bank Support For Proprietary Trading
Published on: Feb. 14, 2026, 8:52 p.m. | Source: Free Press Journal
The RBI has mandated fully secured bank funding for brokers from April 1, 2026, eliminating reliance on unsecured promoter guarantees. Banks cannot fund proprietary trading, and all such exposure will fall under capital market limits. The move will likely reduce leverage, increase capital needs and raise guarantee costs.
