BSE Shares Plunge Nearly 10% Following RBI's New Cash-First Brokerage Norms

Shares of the Bombay Stock Exchange (BSE) experienced a significant decline of nearly 10% during intraday trading on Monday. This downturn followed the Reserve Bank of India's (RBI) announcement of new draft regulations aimed at reducing brokerage leverage, which require fully secured bank guarantees starting April 1, 2026. Financial analysts, including those from Citi, have expressed concerns about the increased capital intensity that these new norms could impose on brokerages. Despite the current drop, BSE's stock has shown impressive growth, rising approximately 64% over the past year. The market's reaction underscores the potential impact of regulatory changes on financial institutions and highlights the ongoing challenges faced by brokerages in adapting to stricter financial oversight.