Why India desires to gather a query to before it leaps on the SPAC bandwagon


With a diminutive bit luck, Indian security regulators shall set a query to at ancient recordsdata and the context of Indian securities markets.

Synopsis

These ‘smooth cheque companies’ don't absorb any industrial plans as adversarial to to cancel a non-public firm the bellow of cash raised from an IPO, thereby enabling the firm to switch public mercurial. In many methods, it isn't any diversified than reverse mergers of one other generation, as adversarial to for guidelines like compulsory return of capital in two years or defined bellow of funds

Everybody looks to be singing paeans for special motive acquisition companies (Spacs) and their most up-to-the-minute gigantic improve in US markets. However it absolutely’s clever to conduct a reality compare on their performances and risks.

The British executive recently signalled relieve for looser stock-itemizing guidelines to attract tech companies and Spacs put up-Brexit. These will inspire firm founders to checklist shares with out giving up preserve watch over, and peaceable kind the stock

BY

Raj Shekhar Joshi

ET CONTRIBUTORS

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