[1] PSPC Statistics (SPACInsider) accessed 5-1-2022. [30] economictimes.indiatimes.com/markets/stocks/news/indias-buoyant-. [1] What are special purpose acquiring corporations can be found in corporatefinanceinstitute.com/resources/knowledge/strategy/special-purpose-acquisition-company-spac/ (last visited 09 March 2022) [2] How Special Purpose Acquisition Companies (SPACs) work, available under www.pwc.com/us/en/services/trust-solutions/accounting-advisory/spac-merger.html (last visited 09 March 2022) [3]An introduction to PSPC can be found at www2.deloitte.com/us/en/pages/audit/articles/spac-risks-trends.html (last visited 09 March 2022) The Indian transactional space is slowly but steadily developing. Recently, SEBI established an expert committee to examine the feasibility of a regulatory framework for PFCS in India. The pioneer is the International Financial Services Centre Authority (IFSCA), which recently created a regulatory framework for PPCS with the Issuance and Allotment of Listing (IFSCA) Regulations, 2021. [8] However, if the Indian government is to sail the SPAC ship, it will need to undertake major regulatory revisions to relax the regulatory framework and make it lucrative and rewarding for Indian cashless companies to access capital through listing on foreign capital markets. In addition, the creation of a legal framework for PSPC in India would open up new opportunities for start-ups and local companies to access domestic capital markets. [10] Vikas Bagaria, SPAC inmitten des IPO-Booms (Times of India, Opinion, 9-9-2021) abgerufen am 6-1-2022. [2] CCI donne son accord au renouvellement de la fusion Power avec RMG II (The Economic Times, 9-6-2021) Abgerufen am 5-1-2022. [14] medium.com/@saileshpatnala/spacs-capital-structure-de-spac-trans.

[3] Iqbal Tahir, India: Supportive SPAC Regulations Can Unlock Significant Value for Indian Companies (Mondaq, 21-5-2021) Abgerufen am 7.1.2022. [13] SEBI excludes PSPC`s policy to support the listing of new age technology companies (Business Standard, 29-12-2021) accessed 7-1-2022. [27] clearthink.capital/blog/comprehensive-faq-spac-sponsorship-spac-. [11] Rakesh Nangia and Neha Malhotra, Regulatory Challenges for SPAC in India (Business Laws, The Hindu, 21-3-2021) accessed 7-1-2022. [9] Rise of SPACs: An Indian Perspective (PWC, May 2021) Accessed 2022-01-06. In our experience, target shareholders almost always opt for a share exchange. In particular, the acquisition of proportionate rights over the merged entity by the target shareholders is treated as an acquisition in a company outside the group (as opposed to the maintenance of prior rights). [29] Therefore, the acquisition of shares of the merged entity by the target shareholders would not qualify for the minority interest exemption. This is in contrast to a regular IPO, where the acquisition of new shares or rights by existing or new investors may require CCI approval. In this case, the target shareholders must report this, as their existing rights have been transferred to a legal entity operating outside the group. If the target company is not already assimilated to a legal entity, an additional split step may be necessary.

While several provisions of the Securities and Exchange Board of India`s ECI (Issuance and Disclosure Requirements) Regulations 2018 attempt to make Indian PSPCs a reality, ambiguities within the framework make the task an obstacle. It is clear that in order to introduce PSCPs into the Indian economy, several changes need to be made to the Indian legal framework. This can be a difficult task, but given the rich start-up ecosystem thriving in India, it is important to do so sooner, the longer it takes to pass SPAC-friendly legislation, the greater the likelihood of losing the business. While PSPC transactions in India are still in their infancy, the number of PSPC-related conversations in the Indian transaction space is growing rapidly. However, there are some Indian tax and regulatory considerations that need to be adequately considered/structured before PSPC structures are implemented in India.