RBI Delays Acquisition Finance Rules by 3 Months to July 1

• The Reserve Bank of India (RBI) has deferred the implementation of acquisition finance guidelines by three months to July 1, 2026.
• The decision follows further stakeholder feedback and a review of the framework.
• RBI also revised the "Amendment Directions on Capital Market Exposures" framework, initially announced on February 13.
• Key tweaks include modifying the definition of acquisition finance to include mergers and amalgamations, limiting lending to non-financial entities, and allowing acquiring companies to avail finance for on-lending to subsidiaries.
• Refinance of acquisition finance is permitted only after the acquisition is concluded and control established, solely for retiring the acquisition debt.