Won't revisit broker funding norms: RBI guv

THE RESERVE BANK OF India is not considering revisiting its recently announced norms on bank financing for traders and brokers, Governor Sanjay Malhotra said on Monday.

- FE BUREAU

He also ruled out any systemic risk arising from the IDFC First Bank fraud.The RBI recently mandated that banks must secure 100% collateral when funding brokers and capped total exposure to 40% of their tier-1 capital. It has also barred bank funding for proprietary trading by brokers.Since proprietary trading accounted for about 30% of participation in cash and futures markets and nearly 50% in the equity options segment as of December 2025, the move is expected to affect overall trading volumes. THE NEW RULES take effect from April 1, sparking market concerns.