Groww Shares Plummet After RBI Tightens Lending Norms for Stock Brokers

Shares of brokerages Groww and Angel One came under pressure during the intraday trading today after the RBI announced tightening of norms on loans against shares and credit facilities to capital market intermediaries.

While shares of Groww fell as much as 5%, Angel One’s shares plummeted close to 10%.

The central bank announced the revised framework after market hours on February 13 (Friday). It has capped loan-to-value ratio for retail investors, limiting IPO financing to ₹25 Lakh per individual and mandating stricter collateral and exposure norms for brokers.

These measures could curb leverage-driven trading and reduce speculative participation in equities. This may dampen near-term growth momentum for the two companies and weigh on their share price.

For loans to capital markets intermediaries, 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 cost for brokers, brokerage firm JM Financial said.

“Among retail brokers, we expect Angel One to immediately relook at its funding for its MTF book (₹6,100 Cr) while Groww will need to come to markets as its MTF book scales up aggressively (given MTF book soared 4X to ₹2,300 Cr in 3Q),” the brokerage noted.

This is the second time this month that the shares of the two companies have come under pressure. Earlier, after the announcement of the Union Budget 2026-27 on February 1, Groww and Angel One saw a substantial erosion in their market capitalisation.

Back then, the stocks came under pressure after finance minister Nirmala Sitharaman proposed raising the Securities Transaction Tax (STT) on futures and options (F&O). The central government will hike the STT on futures to 0.05% from the current 0.02%.

Besides, STT on options premium and exercise of options will be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively.

Shares of Groww plummeted as much as 14% during the intraday trading on February 2. However, the stock recovered from the shock, zooming over 5% in the first two weeks of February.

It is pertinent to note that Groww has been expanding its revenue streams over the past few quarters. The company’s consolidated net profit declined 28% YoY to ₹546.9 Cr in Q3 FY26 due to the impact of a one-time long-term incentive provision. Operating revenue jumped 25% YoY and 18% QoQ to ₹1,216.1 Cr in Q3 FY26.

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