Banks to stop collateral-free intra-day funding to brokers

Till now, such intra-day exposures to market intermediaries - unlike guarantees to a broker or longer-tenor loans to finance proprietary trades - were not considered as 'loan' to brokers. It largely remained a grey area as neither banks categorised it as capital market exposure nor the regulator insisted on it. However, this changed with RBI imposing conditions on banks for having current accounts of firms and companies.

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