Treading with care at a new frontier

Are the new norms for banks in M&As restrictive? Anish Mashruwala, finance chair and partner at JSA Advocates & Solicitors, reasons the draft has a clear regulatory lens in signalling the proposed relaxation. Besides the value limit cap, there’s also the fact that Tier-I capital of banks will be at varying levels and that may itself not provide a level playing field as the restriction will not apply equally in terms of value. “Having said that, I understand that even banks having larger Tier-I capital reserves have voiced that the value limit based on the 10 per cent cap is limiting in the current market scenario,” he says. Read more