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Experts by SEBI to Examine Feasibility of SPACs

Published on March 13, 2021
Current Context: The Securities Exchange Board of India (SEBI) has constituted a committee of experts to examine the feasibility in order to implement Special Purpose Acquisition Companies (SPACs).
Experts by SEBI to Examine Feasibility of SPACs
  • The committee is set up under SEBI’s Primary Market Advisory Committee (PMAC).
  • The main moto to examine SPACs is to boost the funds in an initial public offering (IPO), which will be used to identify and merge with the target company.
  • The expert group is set up to explore the potential of SPACs and building adequate checks and balances in the regulatory framework by taking care of associated risks.
  • SPACs: These are the blank cheque companies that are not having any business plan while seeking investor money. The Private equity funds or financial institution having expertise in a particular industry with investment for working capital and issue related expenses can become SPACs.
  • Static Part: 
    • HQ of SEBI: Mumbai
    • Chairman of SEBI: Ajay Tyagi

Question: 

Q.1 SEBI has set up a group of experts to examine the feasibility in order to implement SPACs. What does ‘A’ signifies in SPACs?
a. Advanced
b. Acquisition
c. Approved
d. Access
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