RBI Defers New Capital Market Rules Till July 1 - Check Key Details

The Reserve Bank of India (RBI) has deferred the implementation of the Amendment Directions on Capital Market Exposures to July 1, 2026, while relaxing certain conditions that brokers had resisted against.

While the implementation has been postponed, there are no changes to the key proposals. 

In February, the implementation of rules for banks exposure to capital markets were issues and expected to be in effect on April 1.

The Reserve Bank of India also made some changes to the directions after sectoral feedback.

However, the rules on lending to capital market intermediaries were eased and clarified, allowing funding backed by 100% cash or cash equivalents collateral.

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The RBI has done away with restrictions on extending finance to market makers against securities in which the entities operate.

India's central bank has also altered the definition of acquisition finance in the norms to include mergers and amalgamations.

Until the directions were changed, banking institutions were not allowed to finance acquisitions, creating a disadvantage as compared to foreign banks and investment funds.

Acquisition finance may be extended only to buy control over a non-financial target company.

Meanwhile, the fresh rules will now apply limits on loans against securities, capping them at Rs 10 lakh per individual and Rs 25 lakh for IPO-related loans, and preventing borrowers from availing these limits from multiple lenders.

The country's top bank noted that banks, capital market intermediaries and industry associations had sought an extension of the effective date and flagged operational and interpretational issues, the RBI said.

The intraday facility for non-debt mutual funds, secured by guaranteed receivables due on the same day as result of the maturity proceeds of government securities, treasury bills, state development loans (SDLs), and interest from SDLs or G-Sec and held by those mutual funds, including  maturity proceeds from TREPS from CCIL, will not be labelled as cumulative monthly earnings (CME).