BSE, Angel One, Groww, Nuvama, Motilal OFS shares fall upto 10% as RBI tightens lending rules

Shares of capital market players came under pressure on Monday after the Reserve Bank of India tightened norms governing bank lending to market participants engaged in proprietary trading and leveraged client positions. The revised rules triggered a sharp sell-off across exchange and brokerage counters, reflecting investor concerns about higher funding costs and reduced trading activity.

Stock exchange operator BSE Ltd led the decline, with the stock plunging 10 per cent to a low of ₹2,726.30. By 10.50 am, it traded at ₹2,830.90 compared with its previous close of ₹3,025.30.

Brokerage names were also hit, as Angel One dropped 9.5 per cent to ₹2,441 from the previous close of ₹2,698.30, while Billionbrains Garage Ventures (Groww) fell 5 per cent to ₹164.50 from ₹172.92.

Nuvama Wealth Management declined 5 per cent to ₹1,235.40 and Motilal Oswal Financial Services slipped 3 per cent to ₹758.40.

The RBI on February 13 issued revised norms on banks’ exposure to capital market entities, including stricter collateral requirements for guarantees and a prohibition on lending for proprietary trading by brokers. Market participants interpreted the measures as likely to curb leverage and liquidity in derivatives segments that depend heavily on proprietary desks.

Brokerage views highlighted the potential impact. Devarsh Vakil, head of prime research at HDFC Securities, said the circular tightens banks’ capital market exposures and is expected to raise costs for brokers while curbing leverage in derivatives, where proprietary trading accounts for a substantial share of futures and options turnover.

Analysts at Jefferies said they see BSE as particularly affected by the new framework, estimating that restrictions on proprietary trading could result in about a 10 per cent hit to the exchange operator’s earnings.

Investors are expected to monitor how brokers and exchanges adapt their funding structures and trading strategies in response to the tighter regulatory environment, with the near-term sentiment likely to remain cautious as the industry assesses the full implications of the policy shift.

Published on February 16, 2026