New RBI rules demanding 100% collateral for bank guarantees from July 1 are set to significantly impact proprietary trading desks. These firms, crucial to market turnover, face increased funding costs and squeezed profits. Industry experts warn of reduced trading volumes and potential job losses as the cost of capital rises substantially, prompting some firms to seek regulatory review.

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 RBI rules demanding 100% collateral for bank guarantees from July 1 are set to significantly impact proprietary trading desks. These firms, crucial to market turnover, face…