Overview

• The central bank proposed raising per-person loans against shares to Rs 1 crore from Rs 20 lakh and increasing IPO financing to Rs 25 lakh from Rs 10 lakh.
• RBI also proposed removing the regulatory ceiling on lending against listed debt securities, expanding the scope of capital-market credit.
• An enabling framework for banks to finance corporate acquisitions and a principle-based regime for lending to market intermediaries will be issued in draft form shortly.
• Governor Sanjay Malhotra cited long-stagnant limits and stronger bank risk management as context, emphasizing credit flow and competitiveness without compromising stability.
• Analysts expect improved liquidity and bank income but warn that higher leverage could intensify margin calls and volatility unless guardrails like haircuts and concentration limits are applied.