Alpha Grep Securities Pvt., a Mumbai-based high-frequency trading firm, is turning to the bond market for funding after India's regulator tightened banks' exposure to trading firms using their own capital. The firm is raising 2 billion rupees ($21 million) through bonds with a one-year maturity and a 10.5% quarterly coupon. Proceeds will fund margin deposits with stock exchanges and cover working-capital needs.

This move comes as Alpha Grep, one of India's largest high-frequency trading firms, adapts to stricter regulatory oversight. The bond issuance reflects a broader trend of trading houses seeking alternative financing as traditional bank lending becomes more constrained under new capital adequacy norms.