Collateral Damage: Proprietary traders feel the squeeze under RBI's new rules

IN · 2026-07-03

1. Step 1 · The triggerRBI mandates 100% collateral for bank guarantees, increasing funding costs for proprietary trading desks.
2. Step 2 · Knock-onHigher costs reduce leverage and trading volumes, squeezing profitability and causing potential job losses.
3. Step 3 · Reaches youReduced market liquidity and depth may increase volatility and widen bid-ask spreads in Indian markets.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: IN:Economic Times

This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch² is not authorised or regulated. Do your own research.