New Delhi, Feb. 16 -- The banking regulator's new rules to fund mergers and acquisitions will open the doors, but too many conditions could deter banks and borrowers, say experts.

Stricter rules for lending to brokers for leveraged trading elicited a mixed response. The rules are guardrails against the impact of elevated market volatility. While some expect an impact on volumes, others don't, citing that prop traders tendeto be well-heeled than most individual investors.

In its final guidelines on acquisition financing released late Friday, the Reserve Bank of India (RBI) allowed banks to provide funding when the acquirer already controls the target company and seeks to raise its stake beyond prescribed thresholds from 26% to up to 90%....