Banking and Finance

RBI expands IPO, share loan limits to fuel market liquidity

The Reserve Bank of India (RBI) has raised borrowing limits for investors, marking the biggest revision in years.

MUMBAI : Effective October 2025, the financing limit for Initial Public Offers (IPOs) has been increased from ₹10 lakh to ₹25 lakh per individual, while the ceiling for loans against shares (LAS) has been lifted from ₹20 lakh to a substantial ₹1 crore.

The revised norms also cover investments in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), expanding the scope for investors across multiple asset classes.

Key changes

IPO financing: Limit raised from ₹10 lakh to ₹25 lakh per person.

Loans against shares: Ceiling increased from ₹20 lakh to ₹1 crore per individual.

Debt securities: RBI has proposed removing the cap on lending against listed debt securities, giving banks greater flexibility.

Separately, the RBI and NPCI have hiked UPI transaction limits for select categories, such as insurance premiums, capital markets, and IPO subscriptions, to ₹5 lakh per transaction. Contrary to speculation, no ₹25 lakh UPI limit has been announced; the ceiling remains at ₹5 lakh for these specific segments as of September 2025.

Effective October 2025, the RBI has expanded the financing limits for IPOs and loans against shares, aiming to fuel market liquidity. The IPO limit is now ₹25 lakh, and loans against shares can reach ₹1 crore. These changes also cover investments in REITs and InvITs, providing broader investment opportunities.

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