Overview
- India’s central bank deferred its new capital‑market exposure framework to July 1, 2026 after lenders, brokers, and industry groups sought more time and clearer rules.
- Loans against shares and other eligible securities will be capped at Rs 1 crore per person across all banks, with a Rs 25 lakh limit for IPO, FPO, and ESOP subscriptions, which prevents borrowers from splitting credit across multiple lenders.
- Banks may fund proprietary trading by capital market intermediaries only against 100% collateral in cash or cash‑equivalents, a change that will curb leveraged bets once the rules take effect.
- The RBI broadened acquisition finance to cover mergers and amalgamations tied to taking control of a non‑financial company, with refinance allowed only after the deal closes and only to retire the original debt, and with a corporate guarantee required when lending via a subsidiary or SPV.
- Targeted carve‑outs include scrapping the ban on financing market makers against the securities they trade and excluding same‑day receivable‑backed intraday lines to non‑debt mutual funds from capital‑market exposure, easing day‑to‑day liquidity even as longer‑term lending conditions tighten.