The Reserve Bank of India has postponed the implementation of its Amendment Directions on Capital Market Exposures by three months to July 1, 2026, from the earlier deadline of April 1.

The central bank said the decision was taken after receiving representations from banks, capital market intermediaries (CMIs), and industry bodies, which flagged operational and interpretational concerns. The RBI also held further consultations with stakeholders before granting the extension.

Originally issued on February 13, 2026, the revised framework aims to facilitate acquisition financing for Indian corporates, rationalise lending limits against financial assets, and introduce a more principle-based approach for lending to CMIs.

Alongside the extension, the RBI has introduced key clarifications. It expanded the definition of acquisition finance to include mergers and amalgamations and specified that such funding can only be used to acquire control of non-financial companies. It also outlined conditions for financing through subsidiaries and refinancing norms post-acquisition.

On loans against financial assets, the RBI clarified that caps—Rs 1 crore per individual against securities and Rs 25 lakh for IPO/FPO/ESOP subscriptions—will apply at the banking system level.

For CMIs, the central bank allowed bank funding for proprietary trading only against 100% cash or cash-equivalent collateral and removed certain restrictions on financing market makers. It also clarified that specific intraday facilities for mutual funds will not be classified under capital market exposure.

The RBI has issued revised amendment directions across multiple regulatory frameworks for commercial banks and small finance banks, incorporating these changes.