ANMI Flags Concerns Over RBI’s New Lending Norms for Brokers

ANIM(Association of NSE Members of India) has objected to the RBI’s new lending norms for brokerage firms, which mandate 100% collateral and restrict lending for proprietary trading. It has asked SEBI for a six-month extension before the norms take effect on April 1, 2026, warning that the stricter framework could reduce market liquidity and increase trading costs.

Highlights

  • Association of NSE Members of India (ANMI), one of India’s largest stock broker associations, has raised concerns over the Reserve Bank of India’s new lending regulations.

     

  • The new rules by the Reserve Bank of India (RBI) require banks to maintain 100% collateral when providing funds to brokerage firms.

     

  • Banks will also be restricted from lending to brokers for proprietary trading activities.

     

  • ANMI has written to the Securities and Exchange Board of India (SEBI) requesting a six-month extension before implementation.

     

  • The association believes the stricter norms could reduce market liquidity, increase trading costs, and impact overall market activity.

     

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