$BSE

Capital market-related stocks came under pressure on June 5 after RBI Governor Sanjay Malhotra reaffirmed the central bank's intention to proceed with regulations governing bank lending to proprietary trading firms. Shares of BSE declined as much as 5 percent, while Angel One fell around 3.5 percent following the Governor's remarks. The Nifty Capital Markets index was down nearly 2 percent in afternoon trade, with BSE and MCX among the biggest laggards, slipping 4.5 percent and 4 percent, respectively. Earlier this year, the Reserve Bank of India postponed the implementation of the new capital market framework to July 1, 2026, providing temporary relief to brokers. Until then, market participants can continue using bank guarantees backed by 50 percent margin requirements. However, the upcoming rules could increase costs for Margin Trading Facility (MTF) participants. Higher capital requirements for brokers may translate into increased brokerage charges or stricter margin requirements for retail traders. The RBI had previously deferred the rollout of the stricter lending norms for proprietary traders and certain liquidity providers amid heightened market volatility linked to the Iran conflict. With the central bank now indicating that implementation will proceed as planned, capital market stocks witnessed broad-based selling pressure.