SEBI plans to build a dedicated framework for Special Purpose Acquisition Companies (SPAC) in India
Currently, SEBI allows listing of only operational companies with reported financials
SEBI has to either introduce a separate law or amend current regulations to allow listing of ‘non-operating’ or ‘investment’ firms
The development comes at a time when Indian startups are exploring SPACs abroad
SPACs are seeing traction and momentum in the US and other western markets
There has been a demand to regulate and allow SPACs in the Indian market
