But, as the
edit points out, allowing these opaque entities to operate in India is an exercise fraught with risk, given the market regulator’s limited monitoring capabilities. Instead, a more transparent and easier process to allow start-ups to list would probably work better in India. Read it here Other views examine the urgent need to end the loan moratorium, the future shocks embedded in the National Stock Exchange’s IT systems, a look at the gainers and losers of past technological revolutions and the implication of the Quad’s vaccine project When will the Supreme Court moratorium on bank loans end? If it continues banks, wary of borrowers’ opportunism and distorted credit discipline, may not come forward to lend, writes
[co-author: Ilya Ross]
What is a SPAC?
Special Purpose Acquisition Companies, known as SPACs, are companies with no commercial operations set up by investors, and which
exist for the sole purpose of raising money through an initial public offering (IPO) to eventually acquire another company.
Sometimes known as “blank check companies,” SPACs are typically formed by a private equity sponsor that lists its common equities on a public stock exchange through an IPO, with the eventual goal of combining with private businesses. This creates a “back door” into the public markets since these private enterprises don’t need to go through the expense and hassle of their own IPO. Once public, a SPAC typically has two years to complete a deal or they must return their funds to investors. This timeframe for a business combination, the requirement to hold public money in trust, and other technical matters pertaining to a SPAC transaction are set contractually and by specific rules of
Never before has India witnessed such a broad-based upsurge of massive new businesses unconnected with old wealth, political contacts or dirty deals with public sector banks. The unicorns have raised billions of dollars from global investors keen to invest not in venerable names but newcomers with ideas capable of dominating the 21st century.
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As society increasingly expects corporations, large and small,
to generate positive social impact alongside profits, many
entrepreneurs and executives are incorporating their companies as,
or converting to, Public Benefit Corporations
( PBCs ). As discussed in our articles for
VC
Experts- Can I Raise Venture Capital as a PBC?
and What are My Exit Options as a PBC? -a PBC
is a legal corporate form created by the state of Delaware in 2013
that, among other things, codifies a company s social mission.
Most significantly, a PBC allows a board of directors to make
Read more about Decoded: What is SPAC and is it the real thing or a misplaced hype? on Business Standard. Special Purpose Acquisition Companies, or SPACs, are listed shell companies created with the sole purpose to acquire unlisted or private companies and then merge with the latter