RBI’s Draft Framework Reshapes M&A Financing

• 2025-11-21

RBI has released a draft framework allowing Indian banks to play a bigger role in acquisition finance — a space previously dominated by private credit funds. This marks a major shift in how M&A deals can be funded.

📌Key Points

• RBI has outlined clear rules for banks to provide acquisition finance, bringing formal structure to an area long driven by private credit.

• The framework clarifies risk eligibility, capital norms and regulatory oversight for banks entering buyout financing.

• Banks can now tap their balance sheets and lower cost of funds to support leveraged buyouts and acquisition-led deals.

• This move is expected to create a more competitive and transparent market for M&A debt financing.

✅Strategic Impact

• Greater bank involvement can lower borrowing costs and expand access to acquisition finance, potentially boosting deal activity.

• Private credit funds will still play a major role due to their flexibility, speed and higher risk appetite — leading to coexistence, not replacement.

• Strong risk management and governance standards will be essential as the market evolves.

🔅Bottom Line

RBI’s proposed rules open the door for bank-funded buyouts at scale, reshaping India’s M&A financing ecosystem — while private credit continues to remain an important pillar for innovative and customised deal structures.

INCOME TAX-UPDATE

• 2025-11-13

Saving tax with fake deductions is not planning, it’s postponing trouble.

Officially for taxpayers. Practically for Chartered Accountants  

S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS

• 2025-12-21

S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS

Petition for SpecialLeave to Appeal(C) No. 31296/2025

[Arising out of impugned final judgment and order dated 28-08-2025 in MAT No. 1212/2025 passed by the High Court at Calcutta]

ROSHAN SHARMA                                             Petitioner(s)

VERSUS

DEPUTY COMMISSIONER OF REVENUE, STATE TAX &ANR.                                             Respondent(s)

IA No. 276202/2025 - EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT

Date : 10-11-2025 This matter was called on for hearingtoday.

CORAM :

HON'BLE MR. JUSTICE J.B. PARDIWALA HON'BLE MR. JUSTICE K.V. VISWANATHAN

For Petitioner(s) :Mr. Vinay Shraff,Adv.

Mr. Ravi Bharuka,AOR Mr. Dev Agarwal, Adv.

Mr. Shashank Chamoli,Adv.

For Respondent(s) :

UPON hearing the counsel the Court made the following

O R D E R

1. Heard Mr. Vinay Shraff, the learned counsel appearing for the petitioner.
2. Prima facie it appears that the High Court declined to grant any relief to the petitioner herein on the ground that the petitioner has an alternative efficacious remedy of going before the Commissioner, GST.
3. The principal argument of the learned counsel is that ITC cannot be denied solely on the ground that the GST registration of the seller of goods has been cancelled. In other words, goods were purchased by the petitioner herein from a particular party and the GST registration of that party has stood cancelled. In such circumstances, his submission is that the ITC, insofar as the petitioner is concerned, could not have been denied.
4. Issuenotice, returnable on 8.12.2025.
5. One copy of the entire paper books shall be served to Ms. Madhumita Bhattacharya, the learned counsel, who ordinarily appears for the State of West Bengal.

(CHANDRESH)                                     (POOJA SHARMA)

ASTT. REGISTRAR-cum-PS                                                                                             COURT MASTER(NSH)