RBI big move with SEBI
RBI big move with SEBI Minimum 40% Haircut on Shares & ETFs – What Does It Mean? RBI has increased the margin requirement (haircut) on shares & ETFs to minimum 40%. Simple Meaning: If you want to take a loan by pledging shares/ETFs: Earlier 👉 You could get higher loan value Now 👉 You will get only 60% loan value Example: If your portfolio is ₹1,00,000 Earlier you may have received ₹70–80k loan Now maximum ≈ ₹60,000 🎯 Why RBI Did This? 🔥 To reduce excess speculation 🔥 To control borrowed money in stock market 🔥 To protect retail investors 🔥 To maintain financial stability Stock market investment should come from Savings, not from Loans. 💡 What It Means For Investors? ✅ Less leverage ✅ Lower risk of forced selling ✅ Healthier market structure ❌ Short-term liquidity impact possible Long term? → Positive for market stability 👍 Smart money grows from discipline, not leverage. Market is for investors, not gamblers.