The Reserve Bank of India (RBI) has postponed the implementation of its new rules on capital market exposure by three months. The revised deadline is now July 1, 2026, instead of April 1. The central bank said the decision comes after requests from banks, capital market intermediaries, and industry bodies, which sought more time and clarity on certain operational issues.
The amended guidelines were originally issued in February this year. They aim to make it easier for banks to finance acquisitions by Indian companies, streamline lending limits against shares and similar instruments, and introduce a more principles-based approach for lending to market intermediaries.
The RBI has also clarified rules related to acquisition finance. The definition now includes mergers and amalgamations, and such financing will be allowed only when acquiring control of a non-financial company. In cases where the target is a holding or parent company, banks must ensure that the acquisition meets the required synergy conditions across its subsidiaries. Additionally, companies will now be allowed to use acquisition finance to fund subsidiaries, both in India and abroad, for acquiring target companies.
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