New Delhi, Mar 31 (KNN) The Reserve Bank of India (RBI) has extended the implementation of its revised capital market exposure norms by three months to July 1, 2026, from the earlier deadline of April 1.
The central bank said the decision follows representations from banks, capital market intermediaries (CMIs), and industry bodies seeking more time and clarity on operational aspects. The amendments were originally issued on February 13, 2026, after public consultation.
The revised framework aims to enable bank financing for corporate acquisitions, rationalise limits on loans against financial assets, and adopt a principle-based approach for lending to CMIs.
On acquisition finance, the definition now includes mergers and amalgamations and is restricted to acquiring control of non-financial companies. Banks can extend such finance to subsidiaries, subject to conditions, including corporate guarantees and demonstrated synergies.
For loans against financial assets, caps—Rs 1 crore per individual and Rs 25 lakh for IPO/FPO/ESOP subscriptions—will apply at the banking system level.
In lending to CMIs, banks may fund proprietary trading against full cash collateral, while certain restrictions on market makers have been eased. Specific intraday facilities for mutual funds will not be treated as capital market exposure.
The RBI has issued updated amendment directions across credit facilities, concentration risk, capital adequacy, financial disclosures, and related norms for commercial banks and small finance banks.
(KNN Bureau)
