Daijiworld Media Network - New Delhi

New Delhi, Mar 31: The Reserve Bank of India (Reserve Bank of India) has deferred the implementation of its new guidelines on capital market exposure by three months, shifting the effective date to July 1, 2026, from the earlier April 1 deadline.

The central bank said the decision was taken following requests from banks, capital market intermediaries and industry stakeholders, who sought additional time and clarity on certain operational aspects of the revised framework.

The amended guidelines, originally issued in February this year, are aimed at enabling banks to better finance corporate acquisitions, streamline lending limits against shares and related instruments, and adopt a more principles-based approach for lending to market intermediaries.

As part of the clarification on acquisition finance, the RBI has expanded the definition to include mergers and amalgamations. It has also stated that such financing will be permitted only for acquiring control of non-financial companies.

The guidelines further specify that in cases involving holding or parent companies, banks must ensure that acquisition financing meets required synergy conditions across subsidiaries. Companies will also be allowed to use acquisition finance to fund subsidiaries in India and abroad for acquiring target firms.

The RBI said the revised timeline will allow smoother implementation of the framework across the banking and financial system.