Brokers to meet govt over RBI's new collateral rules: Report

Association of National Exchanges Members of India will meet Finance Ministry officials to flag concerns over RBI's new capital market exposure norms, Moneycontrol reported. RBI directed banks to increase cash collateral backing bank guarantees from 50% to 100%. Brokers believe this may restrict bank funding for proprietary trades, reduce liquidity, widen bid-ask spreads and increase impact costs.