The Reserve Bank of India (RBI) has eased rules for bank lending related to acquisition finance and loans against shares. Banks can now refinance existing debts of target companies if it is essential for acquisition finance. Borrowers must meet strict conditions like having a minimum net worth of ₹500 crore, three years of net profit, and an investment-grade credit rating for unlisted acquirers. The RBI raised the portfolio limit for acquisition finance to 20% of eligible capital, up from the earlier proposed 10% of Tier 1 capital. This limit fits within the overall capital market exposure ceiling. These final guidelines follow consultations with banks and take effect from April 1, 2026. For infrastructure trusts, such as InvITs, acquisition funding will follow the updated RBI framework, focusing on control, leverage, and security norms. The RBI has also increased the amount retail borrowers can take against shares, from ₹20 lakh to ₹1 crore per person. Within this, banks may lend up to ₹25 lakh for buying securities in the secondary market. Loans up to ₹25 lakh per individual are allowed for IPOs, FPOs, and ESOPs, with borrowers providing at least 25% cash margin. This means loans cannot exceed 75% of subscription value. Further, the RBI set loan-to-value (LTV) limits for other market instruments: 60% for listed shares, 85% for high-rated debt securities (BBB or above), and 75% for equity funds, ETFs, REITs, and InvITs. These steps aim to enhance lending flexibility while ensuring sound financial conditions.