Daijiworld Media Network - Mumbai

Mumbai, Oct 25: The Reserve Bank of India (RBI) has proposed new guidelines that would allow banks to provide loans to Indian companies seeking to acquire full or controlling stakes in other firms, both within the country and overseas. The move aims to support strategic, long-term investments and strengthen the global competitiveness of Indian corporates.

Under the draft framework, only listed companies with a strong financial record — including a satisfactory net worth and profitability for at least the past three years — will qualify for such funding. Banks will be permitted to finance up to 70 per cent of the total acquisition cost, with the remaining 30 per cent to be contributed by the acquiring company through its own equity.

The RBI has clarifie

See Full Page