The amendments create a unified framework that permits banks to provide acquisition financing for corporate takeovers while simultaneously tightening collateral requirements for stockbrokers and other intermediaries.
– Banks can now fund up to 75% of a deal’s value for strategic acquisitions (onshore and offshore) by Indian non-financial companies. The borrower must have a minimum net worth of Rs 500 crore and a 3-year track record of profitability. The acquiring entities must contribute at least 25% equity from their own funds.
–The exposure limits are capped at 40% of a bank’s Tier 1 capital (on both solo and consolidated bases).
–All credit facilities to SEBI-regulated brokers must be fully secured by tangible assets, promoter-only guarantees are no longer sufficient. Banks are explicitly prohibited from financing proprietary trading activities of brokers. Bank guarantees to exchanges must have at least 50% collateral, with25% in cash.
–Loan to Value (LTV) for listed shares is capped at 60%, while REITs, InvITs, and Equity MFs is capped at 75%. A minimum 40% haircut is mandatory for equity shares accepted as collateral from intermediaries.
(Link: RBI Circular 211/2026 Dated 13/02/2026- CBs Credit Facilities)
(Link: RBI Circular 212/2026 Dated 13/02/2026- CBs Concentration Risk)
(Link: RBI Circular 213/2026 Dated 13/02/2026- CBs Prudential Norms)
(Link: RBI Circular 214/2026 Dated 13/02/2026- CBs Financial Statements)
(Link: RBI Circular 215/2026 Dated 13/02/2026- CBs Undertaking Fin Services)
(Link: RBI Circular 216/2026 Dated 13/02/2026- SFBs Credit Facilities)
(Link: RBI Circular 217/2026 Dated 13/02/2026- SFBs Concentration Risk)
(Link: RBI Circular 218/2026 Dated 13/02/2026- SFBs Prudential Norms)
(Link: RBI Circular 219/2026 Dated 13/02/2026- SFBs Financial Statements)