The Reserve Bank of India’s amendment, effective 1 April 2026, ushers in sweeping changes to funding structures, collateral norms, and exposure rules within the capital markets ecosystem — a move that could reshape the operating landscape for stock brokers.

A key change under the amendment is the shift toward fully secured funding for brokers. Going forward, only 100% secured funding will be permitted, with limited carve-outs such as intra-day settlement timing facilities. Earlier, bank guarantees for instance of Rs 100 could be structured with Rs 50 backed by fixed deposits and the remaining Rs 50 supported through unsecured instruments such as personal or corporate guarantees. The revised framework removes this flexibility.

The amendment also introduces stricter rules for bank guarantees issued in favour of exchanges or clearing corporations. A minimum of 50% collateral will now be required, of which at least 25% must be in cash. In addition, equity shares accepted as collateral will be subject to a minimum haircut of 40%, marking a tightening of collateral valuation norms.

Another significant change relates to proprietary trading. Banks will no longer be permitted to provide funding for prop trading activities, with exceptions limited to areas such as market making and certain debt warehousing functions. Further, all exposures will now be classified as capital market exposure, meaning that banks’ overall limits for such exposures will apply, potentially affecting lending appetite.

The framework also introduces ongoing collateral monitoring and margin call provisions. Collateral cover will need to be maintained on a continuous basis, and facility agreements must include explicit clauses for margin calls in the event of shortfalls.

Overall, the amendment is expected to reduce leverage across the system and increase capital blockage for brokers. Bank guarantee costs are likely to rise under the revised structure, while promoter guarantees alone will no longer suffice as adequate support.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Chinese robovan company Zelos Technology has bolder ambitions after striking a deal to create a $2 billion business with Alibaba’s logistics arm.

Its next step? Investing in core technology and accelerating overseas expansion as it looks to dramatically expand the size of its fleet.

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After a brutal two-day selloff that saw Infosys and Wipro ADRs plunge as much as 14.5%, Friday’s session brought a much-needed breather. Bargain hunting kicked in at lower levels, sparking a sharp rebound as Infosys climbed 4% while Wipro gained 3%—helping both stocks close the week on a far stronger note.

As much as Rs 5.7 lakh crore evaporated from the sector in just eight trading sessions and the Nifty IT index crashed 19% in the short span. The selloff wasn’t restricted to the two, IT bellwether plunged to its over 5-year low on Friday. Coforge, LTIMindtree, HCL Tech, and Mphasis also slipped up to 4%.

The bearish sentiment stemmed from US artificial intelligence startup Anthropic, which unveiled a new tool designed specifically for corporate legal teams earlier this month. Anthropic, the company behind the Claude chatbot, said the product is capable of automating several legal functions, including contract reviews, non-disclosure agreement triage, compliance workflows, legal brief preparation and standardised responses.

Rally on the cards on Monday?

International brokerage firm JP Morgan has a message for panic-stricken investors: IT services firms are the indispensable “plumbers of the tech world” and their dividend yields have now hit levels last seen only during the global financial crisis and COVID-19.

As Rs 5.7 lakh crore evaporates from the sector in just eight trading sessions and the Nifty IT index crashes 19% in the short span, the Wall Street giant is turning contrarian, declaring “deep value” buying opportunities in bloodied bellwethers Infosys and TCS.
While AI tools like Claude Cowork spark fears of wholesale disruption, JP Morgan argues someone still needs to make enterprise software actually work and that’s where Indian IT services remain irreplaceable.”Free cash flow/dividend yields scream deep value and are crossing levels prior seen during market dislocation events such as GFC and COVID,” the analysts wrote, recommending a “barbell approach to buy deep value in large caps” with overweight ratings on Infosys and TCS, alongside growth champions Persistent Systems and Sagility.

With the sector trading at valuations previously seen only during major market crises, JP Morgan’s scenario analysis suggests limited further downside even in bear cases, while any marginal recovery in growth could drive significant upside.

“I am of the view that the things are not looking as bad as it is sounding. On the contrary, for most of the IT companies, it is a new birth, new business, new environment in which they will probably be flourishing in coming times,” said Deven Choksey, MD, DRChoksey FinServ to ET Now.

He added that Indian IT companies have positioned themselves strongly for this new operating model. Earlier, most firms billed clients on a time-and-cost basis, but the shift today is toward outcome-based pricing—and clients are increasingly willing to pay for measurable results. This change has been driven largely by the adoption of AI, which is helping companies save time, reduce costs, and deliver solutions faster. If agility-based development defined the previous phase, AI-led development is quickly becoming the new norm. As firms move from time-linked billing to outcome-driven revenue models, many Indian IT players are likely to secure larger and more strategic deals, especially as the business environment continues to evolve at a rapid pace.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Veteran investor Howard Marks has long argued that successful investing is less about predicting exact turning points and more about understanding where markets stand in the broader cycle. His core message in his book, “Mastering the Market Cycle” has taken on renewed importance in today’s complex and fast-changing market environment, where optimism around technology, selective global growth, and India’s structural story coexist with rising valuations and pockets of excess.

In the current phase, global equities, particularly in the US, are trading at elevated valuations, while themes such as artificial intelligence and select technology leaders continue to attract heavy investor interest. At the same time, central banks are navigating the final stages of a tight monetary cycle, and geopolitical risks remain elevated.

His emphasis on calibrating risk rather than making binary bullish or bearish calls becomes especially relevant in such an environment. Instead of being fully aggressive or fully defensive, the philosophy encourages investors to gradually adjust portfolio positioning based on signals from valuations, investor behaviour, credit conditions, and market psychology.

While markets may not yet be in outright bubble territory, they are increasingly vulnerable to disappointment if growth expectations fail to match lofty prices, according to Howard Marks’ recent remarks. The strong concentration of returns in a narrow set of global technology stocks, combined with investor willingness to pay up for long-term narratives, reflects a phase of the cycle where optimism is high, even if not euphoric.

For Indian investors, this framework offers a useful perspective. Domestic equities continue to benefit from structural growth drivers such as capex, manufacturing, and consumption, but selective stock picking and valuation discipline are becoming more critical. Broad-based easy gains are harder to come by in a market where quality growth is already well priced.

Marks has also consistently highlighted the role of investor psychology in driving market swings far beyond what fundamentals alone would justify. Periods of sustained optimism tend to reduce perceived risk, leading to aggressive positioning, while corrections often create opportunities precisely when sentiment is weakest.
Cycles are shaped as much by human behaviour as by economic data is the enduring lesson. Investors who remain aware of this, trimming risk when enthusiasm is widespread and being prepared to add exposure during periods of fear, improve their odds over time.

In today’s environment, where AI optimism, global liquidity shifts, and valuation concerns intersect, Marks’ philosophy serves as a reminder that mastering the market cycle is less about bold forecasts and more about thoughtful positioning, patience, and respect for risk.