India’s RBI Raises IPO Loan Limits in Boost for New Listings

India’s equity capital market, one of the busiest globally for new listings, got a boost as the nation’s banking regulator relaxed rules on loans to investors participating in initial public offerings.

The Reserve Bank of India on Wednesday proposed raising the ceiling on IPO financing to 2.5 million rupees ($28,199) per individual, more than double the current cap of 1 million rupees.

The change is part of a broader set of measures announced by RBI Governor Sanjay Malhotra in his monetary policy statement to expand the scope of capital market lending by banks.

The relaxation can further boost India’s ...