Brokerages may tap bonds and CPs as bank funding turns 'unsuitable'
Published on: Feb. 17, 2026, 5:43 a.m. | Source: The Economic Times
New RBI guidelines effective April 1, 2026, mandate 100% collateral for bank funding to capital market intermediaries, including significant cash margins. This will likely push equity brokers towards bond markets and commercial papers, increasing funding costs and potentially impacting sector profitability and market liquidity.
