RBI amends capital market exposure rules effective April 1
pre-market1 source ↓written by the desknot a recommendation
- effective
- 1 Apr 2024
- of deal value
- 75%
- equity from their
- 25%
- is mandated
- ₹500 cr
The Reserve Bank of India (RBI) has introduced amended directions on capital market exposure and acquisition financing, effective from 1 Apr 2024. The new rules impose stricter eligibility norms, capping bank funding at 75% of deal value and requiring acquirers to contribute at least 25% equity from their own funds. Additionally, a minimum net worth of ₹500 cr is mandated for accessing acquisition finance.
These changes aim to enhance the safety and responsibility of borrowing, impacting how banks finance mergers and strategic stake acquisitions in both domestic and international markets. 📈
Not investment advice. For informational purposes only.