India Ratchets Up Pressure on Stocks With New Trading Curbs

India’s $5.2 trillion stock market is facing fresh strain as authorities step up efforts to rein in trading activity, adding to investor concerns about corporate profit growth and uneven foreign flows.

The country’s central bank tightened rules on bank loans to proprietary traders and stock brokers, a move that is set to curb leveraged trading. Earlier this month, the government raised taxes on equity derivatives, and the market regulator revised margin rules for a popular single-stock derivatives trades.