RBI Extends Implementation of Revised CME framework to July 01, 2026

Current Context: On 30 March 2026, the Reserve Bank of India (RBI) deferred the revised Capital Market Exposure (CME) framework from April 1, 2026 to July 1, 2026.

• The delay followed lobbying by banks and Capital Market Intermediaries (CMIs) citing operational & interpretational challenges.
• Acquisition Finance: Expanded to include mergers/amalgamations; refinancing allowed only post‑acquisition with control established.
• Individual Lending Caps: Loans against shares/Real Estate Investment Trusts (REITs)/Infrastructure Investment Trusts (InvITs) capped at ₹1 crore; IPO/FPO/Employee Stock Option Plan (ESOP) funding capped at ₹25 lakh per person, system‑wide.
• Market Intermediaries Relief: Market makers can borrow against securities; intraday facilities to non‑debt mutual funds excluded from CME limits; proprietary trading allowed with 100% collateral.
• Capital Adequacy: Irrevocable Payment Commitments (IPCs) attract 100% Credit Conversion Factor (CCF), with risk weight set at 125%.

Question:

Q.1 Under the revised CME (Capital Market Exposure) norms, what is the cap on loans against shares/Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)?
a) ₹50 lakh
b) ₹75 lakh
c) ₹1 crore
d) ₹2 crore

Answer: c) The cap is ₹1 crore per individual for loans against shares, REITs, and InvITs.