Shares of Groww experienced a significant increase, rising by as much as 5.60% during intraday trading, reaching a peak of ₹158.50 on the BSE. The stock later settled at ₹157.35, reflecting a 4.83% gain at 11:55 IST, with a market capitalization of ₹98,401.36 Cr ($10.53 billion).
Other brokerage and capital market stocks also saw positive movement, with Angel One's shares climbing approximately 7% to an intraday high of ₹243.50.
This surge follows the Reserve Bank of India's (RBI) decision to delay the implementation of its liquidity tightening framework until July 1, 2026. This extension offers relief to margin trading facility (MTF) providers, allowing them to continue utilizing 50% margin-backed bank guarantees for an additional three months.
The original framework was set to take effect on April 1. Until the new rules are enacted, brokers will operate under the existing system, which includes the use of bank guarantees backed by 50% margin.
The RBI noted that while some relaxations have been made, the fundamental structure of the proposed framework remains intact. This decision comes in response to concerns from banks, intermediaries, and industry bodies regarding operational challenges.
Key points of the new regulations include:
- Loans against eligible securities capped at ₹1 Cr per individual.
- Loans for IPO, FPO, or ESOP subscription limited to ₹25 Lakh.
- Bank financing for proprietary trading to require 100% collateral in cash or cash equivalents.
- MTFs to mandate 50% of collateral in cash.
This regulatory shift occurs as the broking industry faces challenges from an increase in securities transaction tax (STT), effective today. Zerodha recently announced a doubling of brokerage fees for intraday F&O trades to ₹40 per order for accounts not meeting the 50% cash margin requirement.
Brokerage firm Jefferies commented that the RBI's decision to postpone the new norms would facilitate a smoother transition but warned that the revised regulations might exert pressure on exchange players like BSE, potentially impacting earnings by around 10% due to increased costs for proprietary traders.
The rise in Groww and Angel One's share prices coincided with a broader rally in the Indian equity markets, where the BSE Sensex surged over 2,000 points (2.8%) to an intraday high of 73,965, and the Nifty 50 gained more than 600 points (2.7%) to reach 22,941.
This market rally is fueled by optimism regarding a potential resolution to the ongoing conflict in West Asia, following indications from US President Donald Trump about a possible de-escalation of actions against Iran.
On the financial side, Groww reported a 28% year-on-year decline in net profit for Q3 FY26, amounting to ₹547 Cr, down from ₹757 Cr in the same quarter last year. However, net profit increased by 16% sequentially from ₹471.3 Cr. Operating revenue rose by 25% year-on-year to ₹1,216.1 Cr, and was 18% higher than ₹1,070 Cr in Q2 FY26.
