The Reserve Bank of India has deferred implementation of revised capital market exposure norms by three months to July 1, 2026, following industry concerns over operational challenges.

BulletsIn:

• RBI postponed new capital market exposure rules from April 1 to July 1, 2026 to allow banks and intermediaries more time for compliance
• Decision taken after feedback from banks and industry bodies highlighting operational and interpretational issues in implementing revised framework
• Norms aim to enable bank financing for corporate acquisitions and introduce principle-based approach to lending for capital market intermediaries
• Definition of acquisition finance expanded to include mergers and amalgamations, with funding allowed only for acquiring control of non-financial firms
• RBI clarified that acquisition finance can be routed through subsidiaries and refinancing allowed only after completion of acquisition process
• Loans against shares capped at ₹1 crore per borrower, while IPO and similar funding limited to ₹25 lakh per individual
• Move expected to ease compliance pressure on banks while improving clarity and risk management in capital market lending