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The Reserve Bank of India (RBI) on Wednesday rolled out fresh measures to energise capital markets by easing financing rules for investors and companies. It plans to scrap the cap on lending against listed debt securities, lift the loan ceiling against shares from Rs 20 lakh to Rs 1 crore per person, and raise the IPO financing limit from Rs 10 lakh to Rs 25 lakh per investor.
These relaxations are aimed at fuelling the buoyant IPO market, widening retail and institutional participation, and channelling more liquidity into primary markets. Analysts said the reforms could increase retail confidence while also channelising more bank credit into productive capital market activity. By removing ceilings and broadening access, the RBI is signalling intent to expand financial intermediation while keeping a close eye on systemic risks.
The relaxation in IPO financing comes at a crucial juncture, with a slew of companies preparing to tap the market for fresh capital. Investor appetite for new issues has remained buoyant, driven by robust listing gains in recent months.
