Shares of capital market-linked companies saw heavy selling pressure on June 5 after Reserve Bank of India (RBI) Governor Sanjay Malhotra indicated that stricter lending rules for proprietary trading activities will be implemented from July 1.
Why BSE, Angel One, MCX Shares Fell Up To 5% After RBI's Remarks On Proprietary Trading Loans
The RBI's decision to go ahead with tighter lending rules for market intermediaries from July has raised concerns that trading activity could slow and funding costs could rise for brokers and other market participants
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The comments sparked concerns about higher funding costs and lower leverage in the market. Investors sold shares of exchanges, brokerages and other market infrastructure firms on fears that tighter rules could affect trading activity and market volumes.
During the session, BSE fell as much as 5.22 per cent, Angel One slipped up to 5.26 per cent, and Multi Commodity Exchange (MCX) declined up to 4.84 per cent. Other capital market stocks such as Nuvama Wealth Management, Central Depository Services (CDSL), Computer Age Management Services (CAMS) and Motilal Oswal Financial Services also traded lower. The Nifty Capital Markets index fell up to 2.35 per cent.
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