RBI Extends Implementation of Revised CME framework to July 01, 2026
In March 2026, the Reserve Bank of India (RBI) extended the implementation of its revised Capital Market Exposure (CME) framework by another 3 months to July 01, 2026 (originally scheduled for April 01, 2026).
In March 2026, the Reserve Bank of India (RBI) extended the implementation of its revised Capital Market Exposure (CME) framework by another 3 months to July 01, 2026 (originally scheduled for April 01, 2026).
- In February 2026, RBI issued the final Amendment Directions on CME, aimed to provide an enabling framework for banks to finance acquisitions by Indian corporates; rationalize the limits for lending by banks to individuals against shares, units of REITs, InvITs, among others, and introduce a principle-based framework for lending to Capital Market Intermediaries (CMIs).
Other Key Changes:
Modified Definition of Acquisition Finance:RBI has also modified the definition of acquisition finance which now includes the mergers and amalgamations. RBI has further clarified that acquisition finance may be extended only to acquiring control over non-financial target companies.
Loans Against Securities: As per RBI directions, the new rules will now apply limits on loans against eligible securities across the banking system, restricting them at Rs 1 crore per individual and Rs 25 lakh for Initial Public Offering (IPO)-related loans, Follow-on-Public Offer (FPOs) and Employee Stock Ownership Plan (ESOP) subscriptions.
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