Regulatory Challenges arising due to the Emergence of Special Purpose Acquisition Companies (SPAC) in the Indian Corporate Environment

  • Medha Pandey and Adarsh Choubey
  • Show Author Details
  • Medha Pandey

    Student at NMIMS School of Law, Navi Mumbai, India.

  • Adarsh Choubey

    Student at NMIMS School of Law, Navi Mumbai, India.

  • img Save PDF

Abstract

For the past decade, Capital markets in India is growing at an exponential rate. During this the market came across some of the inevitable changes in both technical and regulatory regime. However, one of the most significant development in the capital markets around the world’s resurgence of the special purpose acquisition company also known as SPAC. The SPAC made the impact in the capital markets all around the globe by raising a record of US$83 billion in the year 2020. This shows the emergence of SPACs around the world. Keeping this in mind, the main idea of the article is to analyse regulatory framework Globally with respect to SPAC and to analyse the importance of the SPAC in the capital market and how it helps in economic development of the country. The main objective of this paper is to determine the challenges faced by the regulatory bodies in India to come up with a Legal framework for the establishment of SPACs in India. In the end the article concludes by observing that the Indian statues needs to have necessary amendments for SPACs for it to be trusted by the investors and how those amendments will boost the markets and ultimately help in the country’s economic recovery.

Type

Research Paper

Information

International Journal of Law Management and Humanities, Volume 4, Issue 5, Page 1094 - 1111

DOI: https://doij.org/10.10000/IJLMH.112008

Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.

Copyright

Copyright © IJLMH 2021