RBI's new lending norms effective July 1, 2026 require 100% collateral with 40% haircuts, threatening to halve margins for India's proprietary trading

RBI's new lending norms effective July 1, 2026 require 100% collateral with 40% haircuts, threatening to halve margins for India's proprietary trading

RBI's new collateral requirements for trading firms may significantly raise funding costs and limit trading capacity in capital markets.

New Reserve Bank of India regulations, now effective from July 1, aim to bolster financial stability by limiting bank exposure to real estate and securities. These rules,…