2 months ago
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In a determination viewed by a conception of analysts arsenic a impermanent alleviation to banking recognition lines for brokers, the Reserve Bank of India (RBI) has deferred the implementation of the Amendment Directions connected Capital Market Exposures by 3 months to July 1, 2026.
The RBI had issued the last Amendment Directions connected Capital Market Exposure connected February 13, 2026, aft owed information of the feedback received arsenic portion of nationalist consultation. These Amendment Directions were aimed chiefly to supply an enabling model for banks to concern acquisitions by Indian corporates; rationalise the limits for lending by banks to individuals against shares, units of REITs, InvITs, etc. and enactment successful spot a much principle-based model for lending to superior marketplace intermediaries (CMIs).
The Amendment Directions were to beryllium effective from April 1, 2026.
“The Reserve Bank has since received representations from banks, CMIs, and assorted manufacture associations seeking an hold of the effectual date, and besides flagging definite operational and interpretational issues for clarification,” the RBI said successful a circular issued connected Monday (March 30, 2026).
“On a review, based connected further discussions with the stakeholders and connected a review, it has been decided to widen the effectual day of the said Amendment Directions by 3 months to July 1, 2026,” the banking regulator said.
The RBI has carried retired a fewer changes to the Amendment Directions, chiefly clarifying definite provisions relating to acquisition concern and exposures to superior marketplace intermediaries.
With regards to clarifications to instructions connected acquisition concern the explanation of acquisition concern has been modified to see mergers and amalgamations. Acquisition concern whitethorn beryllium extended lone for acquiring power implicit a non- fiscal people company.
If the people institution is simply a holding institution / genitor institution with power implicit different subsidiary companies, the criteria of ‘potential synergy’ indispensable beryllium collectively met for acquisition finance.
The acquiring institution tin present avail acquisition concern for on-lending to a subsidiary incorporated successful India oregon overseas for the acquisition of a people company.
Refinance of acquisition concern tin instrumentality spot lone erstwhile the acquisition concern has been concluded successful each aspects and by constitution of power of the people institution by the acquiring company. Such refinance should lone beryllium utilized to discontinue the acquisition concern debt.
A firm warrant from the acquiring institution needs beryllium required successful cases of acquisition concern extended to a subsidiary oregon a SPV of the acquiring company.
With regards to clarifications to instructions connected indebtedness against Financial Assets the RBI has enactment caps connected loans to individuals against eligible securities astatine ₹1 crore per individual, arsenic good arsenic for subscribing to shares nether IPO, FPO, oregon nether ESOP astatine ₹25 lakh per individual, astatine banking strategy level.
Towards instructions connected recognition facilities to CMIs the RBI has clarified that present slope financing to CMIs for proprietary trading whitethorn beryllium undertaken against 100% collateral comprising of currency oregon currency equivalents. The prohibition connected extending concern to marketplace markers against securities successful which the marketplace making operations are undertaken, has been removed.
Intraday installation to non-debt MFs secured by guaranteed receivables owed connected the aforesaid time connected relationship of maturity proceeds of G Secs, T-Bills, SDL, oregon involvement from G-Sec and SDLs held by specified communal funds, oregon maturity proceeds of TREPS from CCIL, volition not beryllium reckoned arsenic CME.
