The Reserve Bank of India has issued new External Commercial Borrowing (ECB) regulations, effective from February 2026, altering the landscape of mergers and acquisitions by allowing ECB proceeds for acquisition financing under specific conditions. The amendments facilitate more strategic corporate actions, lessen restrictions on maintaining the minimum maturity for certain deals, and permit ECBs during restructuring processes, thus enhancing deal structuring flexibility and enabling leveraged transactions, cross-border acquisitions, and faster resolution of distressed assets.
Please click here to read the full article by Ajay G. Prasad, Partner; Shivani Jain, Senior Associate; Krina H. Kotecha, Associate, published in Lexology.
Ajay G Prasad is a Partner at JSA Advocates & Solicitors, Bengaluru, specialising in corporate law, mergers & acquisitions, and private equity. He advises multinational corporations, private equity sponsors, and promoter groups on complex transactions across IT/ITES, real assets, manufacturing, and life sciences, with a strong focus on India entry strategies and regulatory structuring.