Advance against securities rules, gathered in one place
29 points name advances against securities, across 20 rulebooks.
This is not the whole of your rulebook.
- 17,394 points on this site name no product at all.
- They bind advances against securities as well. A rule on limits binds every kind of lending.
- RBI writes its rules by subject and by risk. It does not write them product by product.
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Points that name it
Master Direction – Borrowing and Lending transactions in Indian Rupee between Persons Resident in India and Non-Resident Indians/ Persons of Indian Origin (Updated as on February 16, 2026)
3 points on this rulebook name it
A bank may lend an NRI rupees against shares or property, but not farmland.
named by the words against shares · RBI Para 3.1 · Read it in place
The bank must also follow RBI's separate rules on loans against shares or property.
named by the words against shares · RBI Para 3.1 · Read it in place
A loan to buy ESOP shares must follow the bank's board policy and RBI's capital-market norms.
named by the words capital market exposure · RBI Para 3.2 · Read it in place
Reserve Bank of India (All India Financial Institutions – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025
2 points on this rulebook name it
The Audit Committee must review the whole capital market exposure at every meeting.
named by the words capital market exposure · RBI Para 13 · Read it in place
The Audit Committee must keep the Board informed of the whole capital market exposure.
named by the words capital market exposure · RBI Para 14 · Read it in place
Reserve Bank of India (Local Area Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025 (Updated as on May 18, 2026)
2 points on this rulebook name it
The Audit Committee must review the whole capital market exposure at every meeting.
named by the words capital market exposure · RBI Para 92(6) · Read it in place
The Audit Committee must keep the Board informed of the whole capital market exposure.
named by the words capital market exposure · RBI Para 92(7) · Read it in place
Reserve Bank of India (Local Area Banks – Concentration Risk Management) Directions, 2025
2 points on this rulebook name it
All capital market exposure may not cross 40 per cent of net worth.
named by the words capital market exposure · RBI Para 26 · Read it in place
Shares taken in place of a bad loan are outside the capital market ceilings.
named by the words Capital Market Exposure · RBI Para 28 · Read it in place
Reserve Bank of India (Small Finance Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025 (Updated as on May 18, 2026)
2 points on this rulebook name it
The Audit Committee must review the whole capital market exposure at every meeting.
named by the words capital market exposure · RBI Para 91(6) · Read it in place
The Audit Committee must keep the Board informed of the whole capital market exposure.
named by the words capital market exposure · RBI Para 91(7) · Read it in place
Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (Updated as on July 01, 2026)
2 points on this rulebook name it
A capital market exposure carries a 125 per cent risk weight, or higher if rated worse.
named by the words capital market exposure · RBI Para 62 · Read it in place
Holding another bank's perpetual shares counts against the capital market ceiling.
named by the words capital market exposure · RBI Para 14(8) · Read it in place
Reserve Bank of India (Commercial Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025
2 points on this rulebook name it
The Audit Committee must review the whole capital market exposure at every meeting.
named by the words capital market exposure · RBI Para 93(6) · Read it in place
The Audit Committee must keep the Board informed of the whole capital market exposure.
named by the words capital market exposure · RBI Para 93(7) · Read it in place
Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025
2 points on this rulebook name it
A capital market exposure carries a 125 per cent risk weight, or higher if rated worse.
named by the words capital market exposure · RBI Para 72 · Read it in place
Holding another bank's perpetual shares counts against the capital market ceiling.
named by the words capital market exposure · RBI Para 19(8) · Read it in place
Master Circular - Exposure Norms and Statutory / Other Restrictions - UCBs
1 point on this rulebook names it
Credit to stockbrokers against shares, bonds or deposits is prohibited, secured or not.
named by the words against shares · RBI Para 6.6.1 · Read it in place
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025
1 point on this rulebook names it
Shares taken on turning debt to equity in a rework fall outside the market limits.
named by the words Capital Market Exposure · RBI Para 21(7) · Read it in place
Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 (updated as on July 15, 2026)
1 point on this rulebook names it
A loan against shares as collateral is capped at a 50 per cent loan to value ratio.
named by the words against shares · RBI Para 106(1) · Read it in place
Reserve Bank of India (All India Financial Institutions – Concentration Risk Management) Directions, 2025
1 point on this rulebook names it
All capital market exposure may not pass 40 per cent of net worth.
named by the words capital market exposure · RBI Para 52 · Read it in place
Reserve Bank of India (All India Financial Institutions - Prudential Norms on Capital Adequacy) Directions, 2025 (Updated as on June 16, 2026)
1 point on this rulebook names it
A capital market exposure carries a 125 per cent risk weight, or higher if rated worse.
named by the words capital market exposure · RBI Para 65 · Read it in place
Reserve Bank of India (Local Area Banks – Prudential Norms on Capital Adequacy) Directions, 2025
1 point on this rulebook names it
Holding another bank's perpetual shares counts against the capital market ceiling.
named by the words capital market exposure · RBI Para 9(4) · Read it in place
Reserve Bank of India (Payments Banks – Classification, Valuation and Operation of Investment Portfolio) Directions, 2025 (Updated as on May 18, 2026)
1 point on this rulebook names it
The Audit Committee must keep the Board informed of the whole capital market exposure.
named by the words capital market exposure · RBI Para 99(7) · Read it in place
Reserve Bank of India (Payments Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (updated as on May 08, 2026)
1 point on this rulebook names it
Holding another bank's perpetual shares counts against the capital market ceiling.
named by the words capital market exposure · RBI Para 12(7) · Read it in place
Reserve Bank of India (Small Finance Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 (Updated as on July 01, 2026)
1 point on this rulebook names it
Shares taken on turning debt to equity in a rework fall outside the market limits.
named by the words Capital Market Exposure · RBI Para 10(4) · Read it in place
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025
1 point on this rulebook names it
Shares taken on turning debt to equity in a rework fall outside the market limits.
named by the words Capital Market Exposure · RBI Para 10(4) · Read it in place
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025
1 point on this rulebook names it
A bank's total capital market exposure cannot exceed 40% of its eligible capital.
named by the words capital market exposure · RBI Para 96(1) · Read it in place
Reserve Bank of India (Commercial Banks - Capital Charge for Credit Risk – Standardised Approach) Directions, 2026 (Effective from April 1, 2027)
1 point on this rulebook names it
Capital market exposures weigh 125 per cent or the counterparty weight, whichever is higher.
named by the words Capital market exposure · RBI Para 19 · Read it in place
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