New Delhi [India] October 2 (ANI): To boost Capital markets participation and increase liquidity, the Reserve Bank of India ( RBI ) has raised the lending limit for financing Initial Public Offers ( IPO s) from Rs 10 lakh to Rs 25 lakh per individual.

The central bank has also raised the limit on loans against shares (LAS) from Rs 20 lakh to Rs 1 crore.

RBI 's decision is expected to encourage greater participation of high net worth individuals (HNIs) in equity markets and deepen engagement in the primary market.

Higher limits will also apply on units of Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (InvITs).

"Loans against shares and IPO financing existed earlier, but were not revised for many years. It is only natural that these limits be updated

See Full Page