The RBI move to enhance banks’ lending to stock market investors will deepen market and allow retail investors make larger bets while investing in both primary and secondary markets.

The banking regulator RBI has proposed to remove the regulatory ceiling on lending against listed debt securities and enhanced limits for lending by banks against shares from ₹20 lakh to ₹1 crore and for IPO financing from ₹10 lakh to ₹25 lakh per person.

RBI has also proposed to withdraw the framework introduced in 2016 that disincentivised lending by banks to specified borrowers (with credit limit from banking system of ₹10,000 crore and above).

Anil Gupta, Senior Vice President and Co-Group Head, ICRA, said the relaxation of lending norms including the removal of regulatory caps on loan against liste

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