NSE Bars Brokers from Distributing Third-Party Loans

The National Stock Exchange of India (NSE) has told stock brokers they can't offer or distribute certain types of loans, like home loans or personal loans, even if they are also registered as research analysts.

This is to keep brokers focused on products regulated by SEBI and to reduce the risk of too much borrowing in the markets.

Some brokerages, like Zerodha and 5paisa Capital, think this is a good idea.

However, the parent companies of these brokers can still create apps that offer both broking and lending services.

The main concern is that people might borrow money to trade, which can be risky if they don't understand the leverage.