Banks tighten intraday funding for brokers; cost of institutional trades goes up: Sources

Banks have tightened intraday funding after a penalty was imposed on a private bank. Zee Business'  Brajesh Kumar brings this report.

Rules tightened on intraday funding:  

- the tightening in rules has resulted in the increase in cost of institutional trades: Sources 

- Banks have ended expoure of intraday trade of 80 per cent of the the brokers: Source   

- The impact of tightening in intraday funding rules is likely to have an impact in Futures & Options (F&O) trades: Source

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- At least 50 per cent margin mandatory on intraday trade funding: Source 

- The tightening in rules have been implemented after a Reserve Bank of India (RBI) penalty on Axis Bank: Source 

- Many banks were indulging in intraday funding in violation of RBI rules: Source 

- Certain banks were indulging in intraday funding by giving unlimited shares in the margin: Source 

- The rule is that a bank can give intraday funding against liquid assets: Source