- Shares of Bombay Stock Exchange Ltd. fell nearly 10% to an intraday low of Rs 2,726
- Stock closed at Rs 2,806, down over 7% from Friday's close of Rs 3,025
- RBI draft rules from April 2026 require 100% secured broker funding, banning guarantees
Shares of Bombay Stock Exchange (BSE) Ltd. fell almost 10% on Monday, touching an intraday low of Rs 2,726. This comes on the back of the Reserve Bank of India unveiling fresh draft guidelines, which are aimed at curbing leverage in the brokerage ecosystem.
The stock is trading at Rs 2,806, accounting for a drawdown of more than 7% compared to Friday's closing price of Rs 3,025. The stock has given investors a return of more than 64% on a 12-month basis.
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The new rules, effective April 1, 2026, move funding towards a “cash-first” approach and are set to increase capital requirements and reduce leverage available to brokerage firms. RBI said broker funding must be 100% secured, ending the practice of using personal or corporate guarantees to back part of bank guarantees.
Under the current system, brokers obtain bank guarantees (BGs) by providing 50% of the value as fixed deposits, while the remaining 50% is supported through personal or corporate guarantees. The RBI is stopping this arrangement. From April 1, all bank guarantee funding must be fully secured, which means all personal or corporate guarantees will no longer be accepted.
In its latest note, brokerage firm Citi has highlighted the potential impact of the fresh RBI guidelines, noting that the move would push intermediaries and market participants to explore non-traditional financing channels.
The global brokerage firm believes this may also accelerate the growth of structured products and alternative lending avenues, particularly among wealth managers serving capital market clients.
Out of 16 analysts tracking the company, 12 maintain a 'buy' rating while four maintain a "hold" according to Bloomberg data. The average 12-month consensus price target of Rs 3,414.71 implies an upside of 23.9%. The stock currently trades at a relative strength index of 47, suggesting neutral market sentiment.
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