Groww shares surge as RBI's regulatory delay brings market optimism.
Shares of Groww experienced a surge, climbing as high as 5.60% in intraday trading to reach ₹158.50 on the BSE, following the Reserve Bank of India’s (RBI) decision to defer the implementation of new liquidity norms for brokers. This decision provided immediate relief to margin trading facility (MTF) providers.
The stock later moderated, trading 4.83% higher at ₹157.35, valuing the company at a market capitalization of ₹98,401.36 Cr ($10.53 Bn). Other brokerage and capital market-linked stocks also saw positive movement, with Angel One shares increasing by approximately 7% to an intraday high of ₹243.50.
RBI’s initial framework, slated to take effect on April 1, has been extended to July 1, 2026. This extension allows market participants to continue utilizing 50% margin-backed bank guarantees for an additional three months. The central bank has clarified that while certain relaxations have been introduced, the core structure of the proposed framework remains unchanged. The decision follows concerns raised by banks, intermediaries, and industry bodies over operational and interpretational challenges.
The RBI has set limits on loans provided to individuals against eligible securities at ₹1 Cr per individual, and ₹25 Lakh for subscribing to shares under IPO, FPO, or ESOP at the banking system level. Under the new norms, bank financing to capital market intermediaries for proprietary trading can be undertaken against 100% collateral comprising cash or cash equivalents. For MTFs, the norms require 50% of collateral to be in cash.
This decision coincides with the broking industry’s adjustment to the increase in securities transaction tax (STT). Brokerage Jefferies noted that the RBI’s move to defer implementation would facilitate a smoother transition, while also pointing out potential pressure on exchange players such as BSE due to increased costs for proprietary traders, possibly impacting earnings by around 10%.
The surge in Groww and Angel One’s share prices occurred amidst a broader rally in the Indian equity markets. The BSE Sensex jumped 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. Groww reported a 28% decline in net profit in Q3 FY26 to ₹547 Cr from ₹757 Cr in the year-ago quarter. Operating revenue stood at ₹1,216.1 Cr, up 25% from the same period last year.
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