Sebi Exploring Possibility To Allow Special Purpose Acquisition Companies In India

Possibilities of allowing special purpose acquisition companies to function in India are being studied, Sebi chairman Ajay Tyagi said.

Possibilities of allowing special purpose acquisition companies (SPACs) to function in the country are being studied, Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi said on Wednesday. Addressing the annual Capital Market Conference organised by industry body FICCI, Mr Tyagi said that the market regulator's Primary Market Committee is evaluating the possibility of allowing SPACs to work in India. Prevailing Sebi rules don't allow listing of SPACs. These companies are formed for raising funds through an initial public offer to acquire a private entity and turn it into a public one.  SPACs are quite prevalent in many countries abroad, especially in the United States of America.