BSE surged 7% to Rs 2,874, while Motilal Oswal jumped 8% to Rs 682.75. Groww climbed over 4% to Rs 158, and Angel One advanced 6.5% to Rs 243.63.
RBI postponed its liquidity tightening framework to July 1, 2026, allowing brokers to continue using 50% margin-backed bank guarantees for three additional months, a reprieve for an industry already strained by higher securities transaction taxes (STT), which came into effect from today. The New MTF (margin trade funding) rules were to kick in from April 1.
The RBI’s February amendment had mandated banks provide only fully secured funding to capital market intermediaries, a dramatic tightening from current practices where guarantees could be partially backed by unsecured instruments. For margin trading facilities, the rules are even harsher: 50% of the 100% collateral requirement must now be in cash, while equity shares accepted as collateral will face a punishing 40% haircut.
Jefferies had earlier estimated the new norms could slash BSE’s earnings by roughly 10%, as proprietary traders face surging costs from higher cash collateral requirements.
“While financing to market makers has been relaxed, tighter collateral requirements have not been changed. We think this could result in a smoother transition for brokers/prop traders, as bank guarantees can now be renewed for up to a year. This should be positive for BSE,” Jefferies said in a note today.
The brokerage added, “In capital markets, we see Groww and BSE as likely beneficiaries of elevated volatility in equity and commodity markets. Although Groww and BSE face risks from STT hike and RBI tightening liquidity, the net volume impact is unlikely to be more than c.10%, which could lead to inefficiencies, attracting fresh flows.”