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SEBI panel exploring if SPACs can be introduced in India: Chairman Ajay Tyagi

The SEBI chairman also said companies should not treat disclosures as checkboxes to tick.

July 28, 2021 / 06:12 PM IST
Ajay Tyagi, chairman of SEBI (Image: Reuters)

Ajay Tyagi, chairman of SEBI (Image: Reuters)

India’s capital markets regulator is examining the possibility of allowing special purpose acquisition companies (SPACs) in the country.

The Primary Market Advisory Committee is deliberating whether a framework for SPACs should be introduced in India and if so, with what safeguards, Ajay Tyagi, chairman of the Securities and Exchange Board of India, said at the 18th Annual Capital Market Conference organised by the Federation of Indian Chambers of Commerce and Industry.

SPACs are shell companies listed on stock exchanges that acquire private companies to make them public by skirting the traditional process of making an initial public offering.

In his speech, the SEBI chairman covered issues such as free float trends in companies, the quality of disclosures and the apparent disconnect between the stock markets and the economy.