Indian markets surge as RBI eases capital market financing rules

Shares of Groww surged as much as 5.60% during the intraday trading today, hitting a high of ₹158.50 on the BSE after the RBI deferred implementation of new liquidity norms for brokers.

The stock later pared some gains and was trading 4.83% higher at ₹157.35 at 11:55 IST, with a market capitalisation of ₹98,401.36 Cr ($10.53 Bn)

Other brokerage and capital market-linked stocks also saw an uptick, with shares of Angel One jumping about 7% to an intraday high of ₹243.50 during the intraday trade.

The rally follows the RBI's decision to defer the implementation of its liquidity tightening framework to July 1, 2026, providing relief to margin trading facility (MTF) providers. The extension allows market participants to continue using 50% margin-backed bank guarantees for an additional three months.

The framework was originally scheduled to come into effect on April 1. Until the revised norms are implemented, brokers will continue to operate under the existing system, including the use of bank guarantees backed by 50% margin.

The central bank clarified that while certain relaxations have been introduced, the core structure of the proposed framework remains unchanged. The decision follows concerns raised by banks, intermediaries and industry bodies over operational and interpretational challenges.

The RBI has capped loans provided to individuals against eligible securities at ₹1 Cr per individual, and to ₹25 Lakh for subscribing to shares under IPO, FPO, or under ESOP at banking system level.

Under the new norms, bank financing to capital market intermediaries for proprietary trading can be undertaken against 100% collateral comprising cash or cash equivalents. For MTFs, the norms require 50% of collateral to be in cash.

The move comes at a time when the broking industry is already grappling with the increase in securities transaction tax (STT), which came into effect from today. As a result, Zerodha, last week, said it would double the brokerage fees for intraday F&O trades to ₹40 per order for accounts that do not comply with the 50% cash margin requirement.

Brokerage Jefferies said that the RBI's move to defer the implementation of the new norms would allow for a smoother transition. However, it added that the revised norms may put pressure on exchange players such as BSE, with a potential earnings impact of around 10% due to higher costs for proprietary traders.

The surge in share price of Groww and Angel One came amid a rally in the Indian equity markets today. BSE Sensex surged over 2,000 points (2.8%) to hit an intraday high of 73,965, while the Nifty 50 gained more than 600 points (2.7%) to touch 22,941.

The rise in the indices came on the hope of an early end to the ongoing conflict in West Asia after US president Donald Trump indicated that the country's action against Iran may wind down soon.

On the financial front, Groww reported a 28% decline in net profit in Q3 FY26 to ₹547 Cr from ₹757 Cr in the year-ago quarter. On a sequential basis, net profit rose 16% from ₹471.3 Cr. Operating revenue stood at ₹1,216.1 Cr, up 25% from the same period last year and 18% higher than ₹1,070 Cr in Q2 FY26.