SPAC framework to be reviewed for efficiency

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The current framework for special-purpose acquisition companies will be reviewed for greater efficiency, says the Securities Commission.

The move is in response to growing demand for such fundraising vehicles as a cheaper and faster route to the market compared to initial public offerings .

These include streamlining the listing process and the regulatory framework for the ACE Market; working with early stage fundraising community for greater regulatory clarity; exploring alternatives for small and medium enterprises and mid-tier companies to tap public markets; and introducing mechanisms to allow credit enhancements for MTCs or credit hedging for investors to boost the bond market.

“The SC envisions a multi-layered capital market with a competitive ecosystem of market institutions, intermediaries and other participants to meet the diverse needs of issuers and investors,” it envisaged.

 

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