Reserve Bank of India on October 1 said it would allow banks to lend for acquisitions while easing some of the restrictions imposed on them for lending against listed shares.
The Reserve Bank of India will provide an enabling framework which will allow banks to finance acquisitions by Indian corporates, Governor Sanjay Malhotra said on Wednesday.
“It is proposed to remove regulatory ceiling on lending against listed debt securities and enhance limits for lending by banks against shares from Rs 20 lakh to Rs 1 crore per person, and for IPO financing from Rs 10 lakh to Rs 25 lakh per person,” said Malhotra in his post-MPC meet speech.
The Basel 3 capital framework would also come into effect from 2027, Malhotra said.
