Mumbai, Feb. 16 -- The Reserve Bank of India (RBI) has notified Commercial Banks - Credit Facilities Amendment Directions, 2026, updating norms for how banks extend credit to stockbrokers and other capital market intermediaries. Banks must provide credit to SEBI regulated stockbrokers and similar intermediaries only on a fully secured basis. Collateral for such credit can include cash, government or eligible securities, immovable property and other approved financial assets, but partial unsecured guarantees or promoter only guarantees will no longer suffice.

Bank guarantees issued in favour of exchanges or clearing houses must be backed by at least 50 percent collateral, of which 25 percent must be in cash, and equity shares accepted as ...