The Rs 1.5 lakh crore bank guarantee link that could rattle NSE, BSE and MCX

Dolat Capital initiated coverage on NSE, BSE, and MCX with sell ratings, citing risks from revised RBI bank-guarantee norms that could push proprietary traders' funding costs from about 1% to around 11% if replaced with commercial paper. The brokerage set price targets of Rs 1,550 for NSE, Rs 3,000 for BSE, and Rs 2,400 for MCX, implying downside of 26%, 20%, and 17% respectively. The funding squeeze could reduce NSE index-options turnover by 8% in FY27 and 18% in FY28, while BSE faces a 10% and 20% hit in those years, given that proprietary firms contribute over 45% of NSE and more than half of BSE index-options volumes.