Peeyush Das, Plabani Panda & Risha Jena, KIIT School of Law
ABSTRACT
The article provides a detailed description about the Special Purpose Acquisition Companies, primarily focusing on the scope in India. In addition to the analysis of the structure and risks of the same, it emphasizes on the need of the right regulatory framework that needs to be mandated by the Indian Government for the growth of SPACs in the country. These legal challenges include various concerns under the securities law, tax law, on mergers and acquisition, Company law, Private International law etc. Critical analysis of these issues has been discussed along with suitable recommendations to overcome this challenge of regulatory framework in India. The ongoing Indian regulatory framework with the tax regimes has made the SPACs less favourable in comparison to a conventional IPO, if considered by an Indian citizen investor point of view. In the view of this, the target organizations need to go through the SPAC preparedness evaluation, to recognize and address any incompetency that may exist, particularly from an investor and the de-SPAC exchange structure viewpoint.
Keywords: Special Purpose Acquisition Companies, regulatory framework, securities law, tax regimes, mergers and acquisition, Company law, Private International law, IPO.
