New Delhi, Oct. 27 -- The Reserve Bank of India (RBI) on Friday released draft norms to enable banks to finance corporate acquisitions and increase lending limits for individuals subscribing to shares through initial and follow-on public offers (IPOs and FPOs).

The proposed Reserve Bank of India (Commercial Banks - Capital Market Exposure) Directions, 2025 aim to rationalise and consolidate existing regulations governing banks' exposure to capital markets.

The central bank has invited stakeholder feedback by November 21, 2025, and plans to implement the new framework from April 1, 2026, reported PTI.

The RBI noted that capital market exposures (CME) by regulated entities carry higher risk and are therefore subject to exposure caps, loa...