Domestic prop trading firms face higher funding costs under RBI's new rules

Domestic prop trading firms face higher funding costs under RBI's new rules

New Reserve Bank of India lending rules increase funding costs for local proprietary traders. These changes require 100% collateral for bank guarantees, impacting domestic firms significantly. Foreign trading majors, however, can access cheaper overseas funding sources. This situation may allow foreign firms to capture a larger domestic market share. Domestic traders face a disadvantage compared to their well-capitalized international competitor…