These draft guidelines are open for public comments till November 21. The final guidelines will take into account the comments received. (Photo: Mariyam Usmani/NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Reserve Bank of India on Friday introduced draft norms for acquisition financing by banks, which state that lenders may finance only up to 70% of the total acquisition value.

The remaining 30% should be accounted from the acquiring company’s equity infusion, as per the draft rules.

The RBI has also proposed that a bank's exposure towards acquisition finance should not exceed 10% of its Tier-1 equity.

Furthermore, the shares of the target company — the firm that is to be acquired — would be the primary security for acquisition finance, according to t

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