RBI’s ECB Rules Set to Boost Banks’ M&A Financing

Banks are expected to increasingly rely on external commercial borrowings (ECBs) to fund mergers and acquisitions as the Reserve Bank of India’s proposed overhaul of the ECB framework creates a new pathway for acquisition financing. Experts say the move reflects the RBI’s recognition of the strong momentum in India’s M&A and real estate markets. “The RBI has noted the growing momentum in India’s M&A and real estate sector. By proposing to allow IFSC banking units and foreign branches of Indian banks to participate in M&A and real estate financing under the ECB route, the RBI aims to leverage this trust and further strengthen the Indian financial market,” said Nand Gopal Anand, JSA Advocates & Solicitors. Read more