CRAFTING A ROBUST REGULATORY

FRAMEWORK FOR SPACS IN INDIA:

INTERNATIONAL INSIGHTS AND LOCAL
ADAPTATIONS

Kartikeya Kothari & Ronit Khandelwal

INTRODUCTION

In a world pulsating with rapid advancements, SPACs emerge as beacons of

financial ingenuity. They're not just acronyms; they represent a seismic shift in
how companies go public and how investors engage with emerging businesses.
As we unravel the layers of SPACs, we’ll uncover a realm where startups meet
investors, and dreams are given the wings to take flight in the stock market
THE SPAC EVOLUTION

Picture the 1980s – an era of financial experimentation. From the

ashes of 'blank check offers,' SPACs emerged as phoenixes, rising
with a unique purpose. These entities, once mere financial tools,
have morphed into strategic vehicles, bridging the gap between
entrepreneurs and the public market. Understanding their evolution
is akin to deciphering the DNA of modern finance.
SPAC VS. IPO

The heart of our discussion lies in this comparison. SPACs, like nimble
athletes, sprint through the hurdles that often slow down traditional
IPOs. They promise speed, flexibility, and innovation. But, as with any
race, there are challenges. We’ll explore the nuanced landscape of
SPACs, understanding the risks and rewards that come with their
lightning-fast pace.
REGULATORY CHALLENGES

In the ever-changing landscape of financial regulations, SPACs find

themselves at the intersection of innovation and compliance.
Understanding the regulatory puzzle is vital. We'll dissect the
challenges faced by SPACs, shedding light on the vital need for a
regulatory framework that fosters innovation while safeguarding
investors.
ECONOMIC SUBSTANCE APPROACH

Enter the Economic Substance Approach – a beacon in the fog of

regulatory complexity. This approach isn’t just theoretical; it’s a
roadmap for a future where innovation and regulation walk hand in
hand. We'll unravel its intricacies, exploring how it can pave the way
for a harmonious coexistence of financial innovation and regulatory
prudence.
OPPORTUNITIES FOR ENTREPRENEURS

Entrepreneurs, this slide is dedicated to you – the dreamers, the

innovators, and the visionaries. SPACs are not just tools; they are
catalysts for your aspirations. They break down barriers, offering a
streamlined path to public capital. We'll uncover how SPACs
empower startups, enabling you to turn your dreams into publicly
traded realities.
CONCLUSION

As our journey nears its end, let’s remember: SPACs are not just chapters in
finance textbooks; they're narratives of change. Crafting a future where
innovation thrives amidst regulations is not just a goal; it’s our shared destiny.
Together, let’s embark on this path, ensuring that every entrepreneur’s vision
finds a platform, and every investor discovers opportunities that redefine their
financial horizons.