An era of tighter financing The Reserve Bank of India (RBI) via a circular dated 13 February effectively stopped funding to prop traders. The circular said that from April 1, banks must provide bank guarantees to prop traders only against 100% collateral, half of which should be in cash margin and the rest in cash…
The Securities and Exchange Board of India (Sebi) will look into representations by stockbrokers seeking a rethink of new norms issued by the Reserve Bank of India (RBI) that require banks to tighten funding to proprietary traders under capital market exposure rules. Sebi chief Tuhin Kanta Pandey at an event on Monday, “We have received…
The share of direct retail participation in India’s largest stock exchange’s cash turnover has fallen to its lowest in a decade, dragged down by risk aversion amid underperforming equity benchmarks, the rise of mutual funds and reallocation towards initial public offerings. Direct retail contribution as a percentage of gross turnover–buy plus sell volumes–fell to 33.6%…
