1 minute read
Private International Law
are notified for SPACs through delegated legislation under the Companies Act which will contain SPAC specific disclosures and also provide an inclusive list of what forms of transactions for SPACs amount to related party transactions.
Private International Law
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In order to deal with contractual dispute concerns arising out of SPAC transactions, it is necessary that the choice of law and the clause of resolution of disputes are clearly stated out in the contractual documents of the SPAC transactions and that a specific disclosure requirement of the choice of law and the dispute resolution clause is made in the prospectus itself so that subscribers and prospective shareholders clearly know the correct forum to approach to enforce their rights. It is also suggested that statute based alternative dispute resolution methods such as mediation, arbitration and expert determination should be promoted for resolving disputes in SPAC related transactions and activities so that private international law issues can be avoided and the disputes do not go on for several years because of jurisdictional issues.
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An Indian Perspective on Special Purpose Acquisition Companies, GLA-TR-001
Epilogue
In light of the discussions and legal propositions advanced in all the chapters of this research, it seems to be clear that the SPAC framework is still at an extremely nascent stage in the Indian context since SPAC transactions can only be conducted in the International Financial Services Centres Authority framework. Therefore, if serious steps are taken towards solving the securities law, tax law, anti- money laundering law, mergers & acquisitions, company law and private international law concerns, then it can prove not only beneficial for encouraging SPACs of Indian origin, but it can also effectively address the concerns of Indian regulators leading to increased interest from foreign SPACs to acquire Indian targets, to speed up the listing process, to encourage the acquisition and growth of start- up companies and to increase certainty in prices of security instruments in the Indian securities market.
