Listing of SPACs in IFSC

PUBLISHED ON: 03-08-2021

The International Financial Services Centres Authority (“IFSCA”) has notified IFSCA (Issuance and Listing of Securities) Regulations, 2021 (“Listing Regulations”) on July 16, 2021 (available here), a framework highlighting the process of issuance and listing of various types of securities and disclosures in International Financial Service Centre (“IFSC”).

 

The Listing Regulations specify the guidelines for listing of Special Purpose Acquisition Companies (“SPACs”) on a recognized stock exchange in IFSC (“Exchange”).

 

A “SPAC” means a company having no operating business and formed with the primary objective to affect a business combination, such as merger, amalgamation or acquisition of shares of companies having business operations.

 

As  per the Listing Regulations, a sponsor of a SPAC is a person sponsoring the formation of the SPAC and includes persons holding any specified securities of the SPAC prior to the listing. 

 

Presently, there is no regulatory framework for SPACs in India, therefore, SPACs in IFSC have offered a promising stimulation to the Indian companies along with the benefits of a liberalized tax regime in IFSC. 

 

Certain compliance requirements for listing of SPAC have been set out hereunder.