India's Acquisition Finance Rules Evolve: Debt Market Set for Boost
Business
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Moneycontrol•14-01-2026, 08:54
India's Acquisition Finance Rules Evolve: Debt Market Set for Boost
- •India is introducing new rules allowing companies to borrow in foreign currency for share purchases via External Commercial Borrowing (ECB).
- •The Reserve Bank of India (RBI) will also permit Indian banks to finance acquisitions by Indian corporates.
- •These changes aim to bridge a long-standing gap, bringing acquisition finance deals back to India from overseas hubs like Singapore.
- •Key modifications include wider borrower eligibility, higher borrowing limits (up to $1 billion or three times net worth), and flexible market-linked pricing.
- •The new framework promises faster execution, deeper market maturity, and increased competition for private credit funds and domestic AIFs.
Why It Matters: New acquisition finance rules in India will boost the domestic debt market, offering more flexibility and choices.
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