New audit rulebook for SPACs in offing: Govt may legalise, allow listing

The draft Bill to amend the Companies Act is expected to be ready by the second quarter of the current fiscal year


The ministry had sought stakeholder’s comments by May 15 on the report and learnt to have received over 200 suggestions.

Shrimi Choudhary
The government is considering to prescribe a reporting and audit mechanism for Special Purpose Acquisition Companies (SPACs) as it looks to legalise them and allow their listing on stock exchanges, according to officials at the Ministry of Corporate Affairs (MCA).

This follows several rounds of consultations and stakeholders' suggestions that the MCA has received on the fresh set of amendments to the Companies Act, particularly on the regulatory framework of SPACs and fractional shares.

Some recommendations, such as setting a minimum and maximum threshold post-issue paid-up capital for sponsors, could be also deliberated, according to the officials.

First Published: May 23 2022 | 06:02 AM IST

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