The Reserve Bank of India’s (RBI) latest guidelines restricting bank funding to brokers led to a sharp decline in stock broking firms’ share prices on Monday. Big listed brokerage such as, Angel One, Anand Rathi, Motilal Oswal Financial Services, Groww as well as well as the Bombay Stock Exchange (BSE) fell between 2.74% to 9.88% intra-day. End of Leveraged Proprietary Desks The RBI in its recent mandate said that banks need to have 100% collateral for providing funding to brokers while limiting their total exposure to 40% of its tier 1 capital. Along with this, the bank funding for proprietary trading by brokers has also been prohibited. Given that proprietary trading constituted about 30% of the participation in cash and futures market and close to 50% in the equity options segment as of December 2025, this move is expected to hit overall volumes.