The capital market stocks witnessed a relief rally after the RBI gave a three-month extension to implement the capital market exposure norms.(An AI-generated image)AI Quick ReadCapital market stocks kicked off the new financial year on a bullish note, recording gains of up to 8% on Wednesday, April 1, as the Reserve Bank of India (RBI) deferred its circular on capital market exposures of banks for a period of three months.
Against this backdrop, shares of Motilal Oswal Financial Services (MOSL) emerged as among the top gainers, rallying 8.5%. Angel One and BSE shares gained 7% each on the National Stock Exchange (NSE). Groww, CAMS, and Nippon Life India AMC, HDFC AMC and Anand Rathi Wealth were higher between 3-6%.
The gains were accentuated by a positive setup in the Indian stock market following de-escalation hopes in the US-Iran war, which is in its fifth week. At the time of writing this report, the NSE Nifty was higher by 2.13% at the 22,800 level.
The capital market stocks witnessed a relief rally after the RBI gave a three-month extension to implement the capital market exposure norms. The norms were to be implemented earlier on April 1.
According to a Mint report, RBI earlier this week said that bank financing to capital market intermediaries (CMIs) or for proprietary trading may be undertaken against 100% collateral comprising cash or cash equivalents. It said that the prohibition on extending finance to market makers against securities in which the market-making operations are undertaken has been removed.
The directions issued by the central bank in February 2026 were aimed primarily to provide an enabling framework for banks to finance acquisitions by Indian corporates. It was also meant to rationalise the limits for lending by banks to individuals against shares, units of REITs, InvITs, etc. and put in place a more principle-based framework for lending to CMIs.
Assessing the impact of these norms, JM Financial had then said that for loans to CMIs, 100% collateral requirement for funding (out of which 50% must be cash for MTF) and 40% haircut on shares for collateral value calculations may reduce bank funding access and result in high trading costs for brokers.
Now, with the deferment of these norms, Jefferies said that it could result in a smoother transition for brokers/proprietary traders, as bank guarantees can now be renewed for up to a year, according to a report by CNBC TV-18. Jefferies believes that the move could be positive for stocks like BSE.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Saloni Goel has over nine years of experience as a business journalist, with a strong track record of covering the financial markets. Over the course of her career, she has reported extensively on global and domestic equities, IPO market activity, commodities, and broader macroeconomic trends. Her reporting reflects a keen eye for detail, data-driven analysis, and the ability to spot emerging themes early.<br>
At Mint, Saloni has been part of the markets team for nearly two years, where she currently works as Chief Content Producer. In this role, she plays a key part in shaping market coverage, driving editorial strategy, and ensuring timely, accurate, and insightful reporting across. She has been closely involved in breaking news coverage and in crafting stories that help decode the complex financial developments.<br>
Before joining Mint, Saloni worked with some of India’s leading business newsrooms, including The Economic Times and Business Standard. Throughout her career, she has worn multiple hats—ranging from reporting and editing to contributing in-depth features and identifying new storytelling formats and market trends.<br>
Her experience in fast-paced digital newsrooms has given her an edge in simplifying complex market concepts without losing analytical depth. Outside of work, Saloni enjoys reading books and spending time with her pet.