The Indian central bank tightens new regulations on capital market loans, leading to a drop in Indian stock exchange and brokerage firm stocks.

After the Reserve Bank of India tightened regulations on banks providing loans to stock brokers and other market intermediaries, on Monday Indian stock exchanges and brokerage stocks fell by 2% to 9.5%. Last Friday, the Reserve Bank of India released revised rules for banks lending to participants in the capital market, including increasing the collateral requirements for bank guarantees and prohibiting loans for brokers' proprietary trading. According to Jefferies, Indian stock exchanges are most affected by the new rules on proprietary trading, which could lead to a 10% decrease in profit for the exchange operator.