Indian brokers' lobby seeks 6-month freeze on new RBI rules, document shows

February 19, 2026 - 08:49

A leading brokerage association in India has formally requested a six-month suspension of the Reserve Bank of India's (RBI) recently implemented guidelines. The appeal, detailed in an internal document, urges the central bank to place the new rules in abeyance, effectively freezing their enforcement.

The regulations in question pertain to the margin funding framework for the non-banking financial company (NBFC) sector. Industry representatives argue that the directives, which aim to tighten norms on how broker-affiliated NBFCs provide margin loans for stock market investments, require a more extended adaptation period.

Brokers contend that an immediate implementation could disrupt market operations and impact liquidity. They emphasize that the requested pause is crucial to allow sufficient time for all market participants to align their systems and processes with the revised regulatory requirements. The association's submission highlights concerns over potential operational challenges and seeks clarity on certain procedural aspects before full compliance is mandated.

The RBI has yet to issue a public response to this request. The outcome is being closely watched by financial markets, as it could significantly influence lending practices and leverage available to investors through brokerage firms. The central bank typically introduces such measures to mitigate systemic risk and ensure financial stability within the market ecosystem.