Margins for bank financing against shares cut

The Reserve Bank of India on Tuesday reduced the margins by 10 per cent to 40 per cent for bank financing against shares.

Based on the recommendations of the task force constituted for monitoring developments in the financial markets, the RBI said margins would now be 40 per cent as against the earlier 50 per cent.

The apex bank lowered the minimum cash margin to 20 per cent from 25 per cent.