India's RBI defers capital market exposure amendments to July 1
Change
India's RBI delayed the Amendment Directions on Capital Market Exposures by three months, moving the effective date from April 1, 2026 to July 1, 2026.
Why it matters
Key operational and interpretational questions about acquisition finance scope, caps on loans against securities, and collateral standards for financing proprietary trading remain unsettled. That leaves banks' compliance, risk systems, and credit documentation in a holding pattern and delays contract and process changes required to meet the revised rules.
Implications
- • Banks' credit policy teams must revise lending manuals to enforce a ₹1 crore per-individual cap on loans against eligible securities and a ₹25 lakh per-individual cap for IPO/FPO/ESOP subscriptions at the banking-system level.
- • Corporate banking and acquisition-finance desks must implement the revised acquisition-finance definition, require corporate guarantees where acquisition finance is extended to a subsidiary or SPV, and restrict refinance of acquisition finance to cases where control of the target has been established.
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