The amendments introduce detailed definitions for acquisition finance, bridge finance, collateral, and capital market intermediaries, while setting clear eligibility, prudential limits, and governance requirements. Banks are permitted to extend acquisition finance subject to strict conditions, including financial strength of borrowers, maximum financing cap of 75% of acquisition value, debt-equity ratio limits, and mandatory board-approved policies. It also governs loans against eligible securities by prescribing loan to value ratios, exposure caps, and restrictions on speculative lending.
