SPACs or special purpose acquisition companies are formed to raise capital via an IPO (initial public offering) to acquire a private business at a later date and take it public

SEBI Chairman Ajay Tyagi said the market regulator’s Primary Market Committee is deliberating if special purpose acquisition companies (SPACs) should be introduced in India.
Speaking at FICCI’s annual Capital Market Conference, Tyagi also said mandatory disclosures by companies “must not be treated as check boxes”.
“Disclosures by many companies are lacking in some areas. Documents are as important as annual reports, financial results should have the quality investors deserve. Companies must follow rule of disclosing material events in letter and spirit,” Tyagi said.
Also read – The rise of SPACs: Is it IPO disruptors or blank check distortions?
He also said that the Federation of Indian Chambers of Commerce & Industry (FICCI) should step up its efforts with regard to corporate governance.
SEBI’s rules currently do not provide for listing of SPACs. SPACs, or “blank check” companies, are formed to raise capital via an IPO (initial public offering) to acquire a private business at a later date and take it public.
SPACs have become extremely popular in the United States. In 2020, 250 odd SPACs listed on US exchanges, raising nearly $83 billion.