No space for SPACs

Sebi needs to ease listing requirements

The Securities and Exchange Board of India (Sebi) and the International Financial Services Centres Authority are reportedly contemplating paving the way for special purpose acquisition companies (SPACs) in India. This is a risky proposition and will increase complications in financial markets. SPACs are essentially shell companies floated to acquire other firms and do not have any operations. They are created for raising capital through an initial public offering (IPO), which is used to acquire private unlisted firms. SPACs are also called blank-cheque companies because investors are not aware of the acquisition targets. Once the acquisition is complete, the SPAC reflects