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Shares of BSE, Motilal Oswal Financial Services, Groww, and Angel One surged after the Reserve Bank of India delayed stricter liquidity norms by three months to July 2026.
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The Reserve Bank of India has postponed the implementation of its proposed tighter liquidity and financing norms for capital market participants by three months to July 1, 2026, providing temporary relief to brokers, proprietary traders and market intermediaries. The move allows banks to continue renewing margin‑backed bank guarantees for up to one year, while keeping collateral requirements unchanged, helping ease near‑term concerns around funding constraints, leverage and operational disruption across the trading ecosystem.
Shares of BSE, Motilal Oswal Financial Services, Groww, and Angel One surged after the Reserve Bank of India delayed stricter liquidity norms by three months to July 2026
- RBI deferred liquidity tightening to July 1, 2026 (3-month delay)
- Financing for market makers relaxed, but collateral norms unchanged
- Bank guarantees can now be renewed for up to 1 year
- Ensures smoother transition for brokers and prop traders
- Provides temporary relief to brokers and intermediaries
- Reduces near-term concerns around:
- Funding constraints
- Higher collateral requirements
- Reduced leverage
Jefferies said the recent regulatory relief is likely to favour exchanges and brokerage platforms, identifying BSE and Groww as key beneficiaries due to improved operating visibility and sustained trading activity. However, the brokerage cautioned that asset management companies (AMCs), registrar and transfer agents (RTAs), and depositories could face risks if equity market sentiment weakens. Within this relatively vulnerable segment, Jefferies indicated a preference for ICICI Prudential Asset Management and KFin Technologies, citing their comparatively resilient business models and execution capabilities.
Market Structure Insights
- Prop/HFT traders contribute: 50 per cent of equity options premium turnover
- Lower participation in cash segment: 28-32 per cent range
- Supports trading volumes and market activity in the near term
- Improves sentiment toward capital market stocks
- May attract incremental flows due to reduced friction
- Regulations are postponed, Seen as a short-term positive trigger
- Medium-term outlook depends on final RBI implementation
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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