# RBI and SEBI 2026: broker lending and mutual fund borrowing **TL;DR:** Two sets of directions, both taking effect in July 2026, reshape how capital moves through India's financial markets. The RBI's revised directions, in force from 1 July 2026, require that all bank credit to stock brokers be fully secured, with tighter collateral rules for bank guarantees and a 40% haircut on equity. Separately, SEBI has opened a narrow window for mutual funds to borrow intraday against guaranteed receivables so that redemptions clear without delay; that facility, first issued in March 2026, was deferred to 15 July 2026. Brokers, banks, and asset management companies each have concrete things to change. --- ## On this page - [Why two regulators moved at once](#why-two-regulators-moved-at-once) - [The RBI directions in plain terms](#the-rbi-directions-in-plain-terms) - [What fully secured actually means](#what-fully-secured-actually-means) - [The bank guarantee cash trap](#the-bank-guarantee-cash-trap) - [The equity haircut from July 2026](#the-equity-haircut-from-july-2026) - [Proprietary trading and capital market exposure limits](#proprietary-trading-and-capital-market-exposure-limits) - [Who bears the impact on the broker side](#who-bears-the-impact-on-the-broker-side) - [The SEBI mutual fund intraday borrowing circular](#the-sebi-mutual-fund-intraday-borrowing-circular) - [What counts as eligible receivables](#what-counts-as-eligible-receivables) - [How the AMC cost rule protects investors](#how-the-amc-cost-rule-protects-investors) - [Before and after: a comparison](#before-and-after-a-comparison) - [What banks need to do and when](#what-banks-need-to-do-and-when) - [Frequently asked questions](#frequently-asked-questions) - [Key takeaways](#key-takeaways) --- ## Why two regulators moved at once India's securities markets run on trust in collateral. When a broker defaults, or when a large mutual fund faces a sudden wave of redemptions, the question that matters is whether the money is actually there. In both cases, the answer depends on how tightly the rules around borrowing and security are drawn. The RBI and SEBI do not always coordinate their calendars, but the July 2026 effective dates here are not coincidental. Both changes reflect a broader push, visible since the SEBI consultation papers of 2024 and the RBI's internal reviews of capital market exposure, toward making credit in the securities markets more transparent and better cushioned against shocks. For you, as a lawyer, compliance officer, or finance professional, the practical effect is the same: if your organisation touches bank lending to brokers, or manages or invests in mutual funds, the rules you followed in 2025 are no longer the rules in 2026. This post covers both changes, what they say, what they mean in practice, and what each category of regulated entity needs to do. No guessing about figures: every number in this post comes directly from the RBI directions or the SEBI circular. --- ## The RBI directions in plain terms The RBI issued the Commercial Banks Credit Facilities Amendment Directions, 2026, first in February 2026 with a 1 April 2026 start date, then in a revised form on 30 March 2026. The revised directions supersede the original and come into force on 1 July 2026, though a bank may adopt them earlier in their entirety. The core obligation is simple to state, even if it takes work to implement. Banks may provide credit facilities to stock brokers only on a fully secured basis. Every rupee of credit extended to a broker must be backed by collateral that meets the standards the directions set out. Before these directions, Indian banking regulation required banks to take collateral for loans, but the rules for broker-specific lending were less prescriptive about the form and quantum of security. A bank could, in practice, extend working capital or guarantee facilities with partial security, or with security that included a mix of assets valued at close to their market price. Those days are over. The directions also draw a boundary around a specific type of broker activity: proprietary trading, meaning trading the broker does with its own money rather than for clients. Banks cannot fund this through credit facilities that fall outside the capital market exposure framework. Any bank exposure to a broker's prop trading desk counts toward the bank's capital market exposure limits. This matters because banks have aggregate caps on how much they can lend into capital markets. By explicitly placing prop-trading exposure within those caps, the RBI closes a gap that could otherwise allow a broker-focused bank to run up hidden concentration risk. --- ## What fully secured actually means "Fully secured" sounds clear but has a precise technical meaning in the directions. It means 100% collateral coverage for all credit facilities extended to a stock broker. The collateral must meet the type and quality standards the RBI prescribes. This has a few immediate consequences for structuring. First, unsecured lines of credit or clean overdraft facilities to brokers are no longer permissible. If a bank has such a facility outstanding, it must restructure it by 1 July 2026 or obtain waiver guidance from the RBI. Second, the valuation of collateral matters more than before, because any shortfall below 100% is not acceptable. A bank that accepted equity at full market value as collateral effectively had a cushion only as wide as the market itself. The directions correct this by imposing the haircut regime discussed below. Third, banks that had informal "comfort letter" or guarantee arrangements with broker group entities, without formal security being lodged, need to revisit those structures entirely. The collateral must actually be pledged or mortgaged in favour of the bank in a form that the bank can enforce. Comfort letters, letters of undertaking, or corporate guarantees from parent entities do not substitute for the security the directions require. --- ## The bank guarantee cash trap Bank guarantees to stock exchanges are a common product. When a broker wants to participate in a particular segment of a stock exchange, the exchange often asks for a bank guarantee as a performance bond. The bank issues the guarantee, the exchange holds it, and if the broker defaults, the exchange can call on the bank. The RBI directions impose what practitioners are calling a "cash trap" on these guarantees. The rules are: - The bank must hold minimum collateral of 50% of the value of any guarantee issued to a stock exchange. - Of that collateral, at least one-fourth must be held in cash. That is 25% of the collateral, which works out to 12.5% of the guarantee's face value. To illustrate: if a bank issues a guarantee of Rs 1 crore to an exchange on behalf of a broker, the bank must hold at least Rs 50 lakh in collateral. Of that Rs 50 lakh, at least Rs 12.5 lakh must be cash (or a cash equivalent the directions accept). The remaining Rs 37.5 lakh can be in other approved securities. This is a significant change for brokers that had funded their exchange participation through guarantees backed primarily by non-cash assets, such as fixed deposits, debt securities, or equity. The cash component now has a hard floor. For banks that issue large volumes of exchange guarantees, this also has a balance sheet effect: they must hold more liquid assets against contingent liabilities, which is capital that cannot be deployed elsewhere. --- ## The equity haircut from July 2026 The revised directions also impose a minimum haircut of 40% on equity holdings offered as security. Like the rest of the revised directions, this applies from 1 July 2026. A haircut is the discount applied to the market value of collateral to account for the possibility that prices may fall between the time the loan is made and the time the bank needs to sell the collateral to recover the debt. If you offer equity worth Rs 100 at today's market price, a 40% haircut means the bank treats it as Rs 60 of security. This is not unusual in international markets. The RBI's own margin requirements for other products, and SEBI's own margining framework for brokers, already apply haircuts to equity. What is new is the explicit 40% floor for this category of broker lending, which aligns the credit side with the exchange-margin side. The practical effect: if a broker wants to borrow Rs 60 against equity, it must pledge equity worth at least Rs 100 at current market prices. If prices fall, the bank may call for top-up collateral to maintain the 100% coverage ratio. Brokers that have structured their credit limits around equity pledges will need to: - Calculate their current effective loan-to-value ratios. - Identify any facilities where the implied haircut is lower than 40%. - Either pledge additional collateral or reduce the facility size before 1 July 2026. Banks face a parallel obligation: they must review their internal credit policies to ensure that equity collateral for broker facilities is valued at a maximum of 60% of market value (reflecting the 40% haircut), and that their loan monitoring systems flag breaches. --- ## Proprietary trading and capital market exposure limits The RBI has long maintained that banks should not become excessively concentrated in capital markets, because securities prices are volatile and a correction can impair multiple borrowers simultaneously. Banks are subject to aggregate capital market exposure limits expressed as a percentage of their net worth. Before the 2026 directions, there was ambiguity about how bank credit extended to a broker's prop trading operations was classified. A bank could argue it was lending to the broker as a business entity, not to a capital market activity, and thus not within the exposure cap. The directions remove this ambiguity. Lending that funds proprietary trading by brokers is now explicitly within the capital market exposure framework. Banks must count it toward their limits. For banks that are already close to their capital market exposure ceilings, this reclassification may mean they can extend less credit to certain broker counterparts, or that they need to obtain higher-level credit committee approvals for new facilities. For brokers, this means that banks will be more cautious about credit that can be traced to prop trading. Brokers that separate their prop and client-service businesses structurally, whether through different legal entities or clear internal segregation of accounts, will find it easier to demonstrate to banks that a given credit facility serves client activity rather than proprietary positions. --- ## Who bears the impact on the broker side The impact of the RBI directions is not uniform across the brokerage industry. It concentrates on certain types of firms. Large full-service brokers that carry significant prop trading books, or that use exchange guarantees extensively to participate in derivatives, commodities, and currency segments, will feel the most pressure. Their liquidity planning must now account for the cash-trap requirement on guarantees and the forthcoming equity haircut. Smaller or discount brokers that do little prop trading and fund themselves primarily through client margin money, rather than bank credit, will feel less of a direct impact. They are still affected indirectly, because their clearing members (often larger brokers or banks) face the same constraints. Foreign bank branches operating in India that issue guarantees to Indian exchanges for their broker clients will need to ensure their global collateral management systems can enforce the Indian-specific cash minimum. Non-bank financial companies (NBFCs) that lend to brokers are regulated separately by the RBI under a different framework, and these specific directions apply to commercial banks. However, if banks tighten supply, NBFCs may see increased demand from brokers, which regulators will watch. --- ## The SEBI mutual fund intraday borrowing circular On 13 March 2026, SEBI issued a circular permitting mutual funds to undertake intraday borrowing to manage temporary cash mismatches during redemption processing. The circular originally set an effective date of 1 April 2026, but an addendum issued on 25 March 2026 deferred the facility to 15 July 2026. To understand why this matters, you need to understand a small but important feature of how mutual fund redemptions work in India. When an investor submits a redemption request, the mutual fund must pay the investor within the time limits SEBI prescribes (generally one business day for equity schemes). To pay, the fund needs to sell securities and receive the settlement proceeds. But settlement in Indian markets, while efficient, is not instantaneous. There is a gap between when the fund's securities are sold and when the sale proceeds actually hit the fund's account. During that gap, the fund may have to pay the investor before it has received the cash. This is a temporary cash mismatch, not a solvency problem. But it requires the fund to either hold excess cash at all times as a buffer (which drags on returns) or borrow short-term to bridge the gap. Before this circular, any mutual fund borrowing counted against the overall limit of 20% of net assets that SEBI allows under the SEBI (Mutual Funds) Regulations, 1996. For large schemes, even a small percentage of a large corpus ties up significant borrowing headroom. The circular creates a separate lane. Intraday borrowing from banks, against guaranteed same-day receivables, is now outside the 20% limit entirely. --- ## What counts as eligible receivables The key constraint on this facility is what the circular calls "guaranteed receivables due on the same day." The circular specifies exactly which instruments qualify: - Maturity proceeds from TREPS (Tri-Party Repo Settlement System, the main overnight money-market borrowing facility for mutual funds). - Proceeds from reverse repo (where the fund has lent money overnight and is due to receive it back). - Maturity proceeds from government securities (G-Sec), Treasury Bills (T-bills), State Development Loans (SDL), and STRIPS (Separately Traded Registered Interest and Principal Securities). All of these are obligations of the Government of India, the Reserve Bank of India, or the Clearing Corporation of India Limited (CCIL). They are not subject to counterparty default risk in any practical sense. The cap is precise: the intraday borrowing on any day cannot exceed the sum of guaranteed receivables from these specific instruments due on that same day. So a fund that has Rs 500 crore of T-bill maturities coming in on a given day can borrow up to Rs 500 crore intraday to meet redemptions, and repay the loan when the T-bill proceeds arrive. This is a well-designed constraint. It ensures the facility is self-liquidating within the business day and that the borrowing is always backed by near-certain incoming cash flows. The borrowing must be from banks. The fund cannot use this window to borrow from other market participants or through market repo. --- ## How the AMC cost rule protects investors Perhaps the most investor-friendly element of the SEBI circular is the cost allocation rule. The Asset Management Company must bear the cost of this borrowing itself. The cost cannot be passed on to the investors in the scheme. This is significant. The typical expense ratio charged to a mutual fund scheme already has a ceiling under SEBI rules, and scheme expenses directly reduce investor returns. If intraday borrowing costs were added to the scheme, investors would bear a charge for something that is operationally useful to the fund but that they did not choose and cannot control. By requiring the AMC to absorb this cost, SEBI aligns the incentive correctly: the AMC benefits from smoother redemption processing (fewer investor complaints, lower operational risk), so the AMC pays for the tool. This also means the cost is a factor in how often AMCs use this facility. A fund house that can manage its liquidity through better portfolio construction, perhaps by holding slightly more overnight instruments, may prefer to avoid the borrowing cost entirely. The circular gives flexibility without mandating its use. Before using this facility, each AMC must: 1. Obtain board approval for the policy. 2. Disclose the policy publicly. 3. Ensure the borrowing mechanism is set up with its banking counterparts. All of this must be in place before 15 July 2026 for an AMC that wants to use the facility from day one. --- ## Who these changes affect The new rules touch the financing chain between banks, brokers, exchanges, and mutual funds. Retail investors are not directly regulated by them, though the effects pass through to how brokers and funds operate. | Party | Directly affected by the 2026 changes? | |---|---| | Banks lending to stockbrokers | ✓ Yes, new collateral and coverage minimums apply | | Stockbrokers and trading members | ✓ Yes, funding terms tighten | | Stock exchanges holding bank guarantees | ✓ Yes, cash and collateral floors apply | | Mutual funds and AMCs | ✓ Yes, intraday borrowing rules change | | Retail investors | ✗ Not directly (effects pass through indirectly) | ## Before and after: a comparison The table below summarises what changed for each category of affected party. The RBI directions take effect on 1 July 2026; the SEBI mutual fund facility takes effect on 15 July 2026. | Area | Before the 2026 directions | From the 2026 directions | |---|---|---| | Bank credit to broker (general) | Collateral required but no explicit 100% coverage mandate | 100% fully secured basis mandatory (RBI, 1 July 2026) | | Bank guarantees to exchanges | Collateral rules varied by bank | Min 50% collateral; cash floor of 25% of that collateral, i.e. 12.5% of the guarantee (RBI, 1 July 2026) | | Equity offered as broker collateral | Haircut set by bank's internal policy | Min 40% haircut mandatory (RBI, 1 July 2026) | | Broker prop trading exposure | Ambiguous classification | Counted within bank's capital market exposure limits (RBI, 1 July 2026) | | MF intraday borrowing | Counted against 20% of net assets cap | Outside the 20% cap if backed by eligible receivables (SEBI, 15 July 2026) | | MF borrowing cost | N/A | Borne by AMC, not passed to investors (SEBI, 15 July 2026) | | Eligible receivables for MF borrowing | N/A | TREPS, reverse repo, G-Sec, T-bill, SDL, STRIPS maturities from GOI, RBI, CCIL | The pattern is consistent: tighter definitions, harder minimums, and clearer cost attribution. The direction of travel across both the RBI and SEBI changes is toward making collateral real, making costs visible, and making risk-taking harder to obscure. --- ## What banks need to do and when The revised RBI directions come into force on a single date, 1 July 2026, although a bank may adopt them earlier in their entirety. There is no separate April deadline under the revised directions. Banks should treat 1 July 2026 as the date by which the following must be done: - Review every existing credit facility to stock brokers. Identify any that are unsecured or partially secured. - For bank guarantees to exchanges, verify that collateral on file meets the 50% minimum and that the cash component is at least 25% of that collateral (12.5% of the guarantee value). - Reclassify any prop-trading-linked exposure under capital market exposure limits. Check whether the bank is within its cap after reclassification. - Update credit policies, lending manuals, and internal approval frameworks to require the full-security standard for all new broker facilities. - Reprice and restructure equity-backed broker facilities to reflect the 40% haircut. Where the current facility size exceeds what 60% of equity market value supports, the bank must either obtain additional non-equity collateral or reduce the facility. - Update valuation systems to apply the 40% floor automatically when equity collateral is submitted for broker credit. - Review margin call triggers to ensure they are calibrated against post-haircut values, not nominal market values. Banks that do not complete this remediation by 1 July 2026 face regulatory exposure under the RBI's enforcement framework, including the possibility of directions, monetary penalties, or supervisory corrective action. For banks that act early, the upside is cleaner credit risk: broker exposures that are fully secured with appropriate haircuts are inherently more resilient to market corrections. --- ## Frequently asked questions ### Does the 100% collateral requirement apply to all types of credit, including working capital and overdraft? Yes. The Commercial Banks Credit Facilities Amendment Directions, 2026 require that any credit facility extended by a bank to a stock broker be on a fully secured basis. The directions do not carve out specific facility types. Working capital facilities, overdrafts, and term loans to brokers all fall within the requirement. ### Can a broker offer a mix of equity and debt securities as collateral? Yes, a broker can offer a mix. But from 1 July 2026, the equity portion of the collateral must be valued after applying a minimum 40% haircut. The debt securities component would be valued according to their applicable valuation norms. The combined post-haircut value must equal or exceed 100% of the credit facility. ### What is the difference between a haircut and a margin? Both concepts express a discount on collateral value, but they arise in different contexts. A haircut is applied by a lender to the market value of collateral to determine the maximum loan it will extend. A margin (in the stock exchange context) is the deposit a broker must post with the exchange against open positions. The RBI's 40% haircut applies on the bank-lending side. SEBI's margin framework (which uses its own haircut tables) applies on the exchange side. The two are separate calculations. ### If equity prices fall sharply, what happens to a broker's credit limit? Because the collateral must at all times equal or exceed the facility, a sharp fall in equity prices would reduce the post-haircut value of the pledged equity. The bank would likely issue a margin call, asking the broker to top up collateral (in cash or other eligible assets) to restore the 100% coverage ratio. If the broker cannot top up, the bank may reduce or suspend the facility. ### Are NBFCs that lend to brokers subject to the same directions? The Commercial Banks Credit Facilities Amendment Directions, 2026 apply to commercial banks as defined under the RBI's regulatory framework. NBFCs are regulated under separate RBI master directions applicable to NBFCs. The specific collateral rules described here do not automatically extend to NBFCs. However, NBFCs lending to brokers remain subject to the general RBI directions on NBFC credit and any sector-specific guidelines the RBI may issue separately. ### Does the prop trading restriction mean banks cannot lend to brokers at all for their own-account activities? Banks can lend to brokers for prop trading, but such exposure must be counted within the bank's capital market exposure limits. There is no outright prohibition, but the cap creates a ceiling. Banks that are already close to their capital market exposure limit may decline to extend credit for prop trading because it would cause a breach. ### What is TREPS, and why is it in the list of eligible receivables for mutual funds? TREPS stands for Tri-Party Repo Settlement System. It is the platform through which mutual funds, banks, and other institutions lend and borrow money overnight using government securities as collateral. When a mutual fund lends through TREPS overnight, it receives repayment the next morning. That repayment is guaranteed by the Clearing Corporation of India Limited (CCIL), making it a near-risk-free receivable. That is why proceeds from TREPS are eligible to back intraday borrowing under the SEBI circular. ### Can a mutual fund use the intraday borrowing facility every day? There is no explicit frequency cap in the circular, but the structure limits practical use. The borrowing cap is the sum of guaranteed receivables due that day. On days when a fund has no significant government security maturities or TREPS proceeds coming in, the borrowing headroom would be very limited. On days with large maturities, the headroom would be larger. The facility is designed for genuine settlement gaps, not as a routine funding mechanism. ### What happens if an AMC uses the facility but does not have board approval or a disclosed policy? Using the facility without meeting the preconditions the SEBI circular imposes (board approval, policy disclosure) would expose the AMC to regulatory action under the SEBI (Mutual Funds) Regulations, 1996, and SEBI's enforcement powers. SEBI can issue show-cause notices, impose penalties, and in serious cases, suspend or cancel an AMC's registration. The preconditions are not procedural formalities. ### Does the intraday borrowing circular change the overall 20% cap for mutual fund borrowing? No. The 20% of net assets cap under the SEBI (Mutual Funds) Regulations, 1996 remains unchanged as the general rule. The circular creates an additional, separate facility for intraday borrowing against specific guaranteed receivables, which falls outside the 20% cap. Regular overnight or term borrowing by mutual funds is still subject to the 20% limit. ### Can a mutual fund borrow intraday for purposes other than redemption processing? The circular specifically addresses temporary cash mismatches during redemption processing. The facility is not a general-purpose intraday credit line. An AMC using the facility for other purposes would not be covered by the circular's carve-out from the 20% cap, and would be subject to the general mutual fund borrowing restrictions. ### Who enforces compliance with the RBI broker lending directions? The RBI supervises commercial banks and enforces compliance with its master directions through its Department of Regulation and Department of Supervision. It can conduct inspections, call for data, issue directions, and impose penalties under the Banking Regulation Act, 1949. Brokers themselves are not directly regulated by the RBI, but the directions shape what banks can and cannot offer brokers. ### Is there a transition period for existing facilities that do not meet the new standards? The revised directions come into force on 1 July 2026. The RBI has not publicly announced a transition window for existing non-compliant facilities in the directions text as summarised here. Banks should seek clarification from the RBI if they have legacy facilities that require restructuring time, rather than assuming a grace period exists. ### Do the RBI directions affect foreign banks operating branches in India? Foreign bank branches in India are regulated by the RBI under the Banking Regulation Act and the Foreign Exchange Management Act framework. They are subject to RBI master directions applicable to commercial banks unless an exemption applies. The broker lending directions would apply to foreign bank branches issuing guarantees or credit to Indian stock brokers. ### What is an SDL, and why does it appear in the list of eligible receivables? SDL stands for State Development Loan. These are bonds issued by state governments in India. They are backed by the respective state government and are typically considered low credit-risk instruments because the RBI provides support mechanisms for state borrowing. SDLs are part of the government securities market and settle through the same clearing infrastructure as central government securities. Their maturity proceeds are therefore predictable and guaranteed in the relevant sense for the SEBI circular's purposes. ### How do the new RBI rules affect the cost of financing for brokers? By requiring 100% collateral and applying a 40% haircut to equity from July 2026, the rules effectively reduce the amount of credit a broker can obtain against a given pool of assets. A broker that previously borrowed Rs 100 against equity worth Rs 100 can now only borrow Rs 60 against the same equity (after the haircut). To maintain the same credit limit, the broker must pledge more assets. Holding more assets in pledged form has an opportunity cost. The overall result is that broker financing becomes somewhat less capital-efficient. ### Will the SEBI intraday borrowing facility affect mutual fund NAV calculations? The AMC bears the borrowing cost, not the scheme. The scheme's Net Asset Value (NAV) is not reduced by the interest cost of intraday borrowing. This is the explicit protection in the circular. If the cost were borne by the scheme, it would appear as an additional expense and reduce NAV. Under the current rule, investors' NAV is not affected by the AMC's decision to use the facility. ### Are small or thematic mutual fund schemes likely to use this facility? Large liquid and debt schemes with significant government-security holdings are most likely to use this facility, because they hold the assets whose maturities create eligible receivables. Thematic equity schemes that do not hold large government-security positions may have fewer eligible receivables on any given day and therefore less borrowing headroom. The facility is most useful for schemes that already operate close to the margin between outflows and settlement. ### Should brokers be concerned about banks restricting credit under these rules? The rules do not require banks to restrict credit to brokers. They require that any credit be fully secured and structured correctly. A broker with high-quality, diversified collateral will still be able to access bank credit. The concern is more specific: brokers that relied on partially secured facilities, or that heavily pledged equity at near-market values, will need to restructure. Brokers that are well-capitalised and hold substantial non-equity assets as collateral may find the transition manageable. ### Where can regulated entities find the primary texts of these changes? The Commercial Banks Credit Facilities Amendment Directions, 2026 are available on the RBI's official website at rbi.org.in. The SEBI circular dated 13 March 2026 on mutual fund intraday borrowing is available on SEBI's official website at sebi.gov.in. Both regulators publish their circulars, master directions, and FAQs in the relevant sections of their websites. Reading primary sources is essential: summaries (including this one) can help you understand the structure, but compliance decisions should be based on the actual regulatory text. --- ## Key takeaways Two April 2026 changes have made India's capital markets credit architecture materially tighter for brokers and materially more flexible (in a narrow way) for mutual funds. For brokers, the central message is: every line of bank credit now requires real, enforceable collateral at 100% coverage. Equity collateral will carry a 40% haircut from July 2026. Prop trading exposure sits inside capital market limits. Liquidity planning needs to reflect these facts before, not after, a credit review with your bank. For banks, the change is primarily one of documentation, systems, and policy. The required actions are clear: update credit approval matrices, restructure legacy guarantee facilities to meet the cash-trap minimum, build in the equity haircut from July, and reclassify prop-trading exposure. The banks that complete this cleanly will avoid regulatory findings. For AMCs, the intraday borrowing window is a useful operational tool, but it requires upfront preparation (board approval, policy disclosure, bank arrangements) and carries a cost the AMC must absorb. Schemes that hold significant government securities and CCIL-backed instruments gain the most from the facility. Both changes reflect a consistent direction of regulatory thinking: credit in capital markets should be transparent, fully backed, and properly attributed. That is a harder standard than what existed before, but it is also a more resilient one. If you work through financial-regulation compliance, the primary texts at rbi.org.in and sebi.gov.in are your starting point. For context on related structural changes, the posts on [how income tax changes from April 2026](/blog/income-tax-act-2025) and [what AI-assisted legal research requires to stay accurate](/blog/ai-legal-research-india) cover adjacent ground. Niyam is a legal AI built for India, grounded in 72,000+ Indian judgments. Every answer carries a citation you can open and verify. If you have questions about how these directions interact with specific regulatory instruments or court decisions, write to hello@niyam.ai or [start for Rs 100](https://app.niyam.ai/register).