RBI issues Amendment Directions on Capital Market Exposure

**Executive Summary** This press release, dated February 13, 2026, announces the issuance of Amendment Directions by the Reserve Bank of India (RBI) concerning Capital Market Exposure (CME). These final directions, effective as of the date of issue, follow the two draft directions issued on October 24, 2025, and incorporate feedback from stakeholders. A statement on the feedback received is provided in the Annex. **Key Points / Main Content** * **Background:** * On October 24, 2025, the RBI issued two draft directions on Capital Market Exposure (CME) seeking feedback from stakeholders. * The draft Directions aimed to: * Provide an enabling framework for banks to finance acquisitions by Indian corporates. * Enhance the limit for lending by banks against shares, units of REITs, InvITs while removing the regulatory ceiling on lending against listed debt securities. * Establish a more principle-based framework for lending to capital market intermediaries (CMIs). * **Amendment Directions Issued:** * The RBI has issued the following Amendment Directions: * Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026. * Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2026. * Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026. * Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Third Amendment Directions, 2026. * Reserve Bank of India (Commercial Banks – Undertaking of Financial Services) – Amendment Directions, 2026 * Reserve Bank of India (Small Finance Banks - Credit Facilities) Amendment Directions, 2026. * Reserve Bank of India (Small Finance Banks – Concentration Risk Management) Amendment Directions, 2026. * Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Second Amendment Directions, 2026. * Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026. **Impact Analysis** **Stakeholder: Commercial Banks** * **Impact:** These banks will need to comply with the amended directions related to credit facilities, concentration risk management, prudential norms on capital adequacy, financial statement presentation, and undertaking of financial services regarding capital market exposure. * **Action Required:** Review and update internal policies, procedures, and reporting mechanisms to ensure compliance with the new amendment directions. **Stakeholder: Small Finance Banks** * **Impact:** These banks will need to comply with the amended directions related to credit facilities, concentration risk management, prudential norms on capital adequacy, and financial statement presentation regarding capital market exposure. * **Action Required:** Review and update internal policies, procedures, and reporting mechanisms to ensure compliance with the new amendment directions. **Stakeholder: Indian Corporates** * **Impact:** These entities are affected by the enabling framework for banks to finance their acquisitions. * **Action Required:** Evaluate potential financing opportunities under the new framework. **Stakeholder: Capital Market Intermediaries (CMIs)** * **Impact:** The amendments put in place a more principle-based framework for lending to CMIs. * **Action Required:** Review and adapt to the new principle-based framework for lending.

Key Entities Referenced