BUSINESS

SPACS FRAMEWORK BEING REVIEWED DUE TO GROWING DEMAND -- SC

21/09/2021 11:48 AM

KUALA LUMPUR, Sept 21  -- The Special Purpose Acquisition Companies (SPACs) framework is being reviewed for greater efficiency amid growing demand for such vehicles for high-growth companies, the Securities Commission (SC) said.

“We do have an existing SPACs framework. We are reviewing the framework now amidst the developments in other markets,” it said.

The commission is monitoring the developments closely and looking at how it works in the other markets.

“(However), we have to be mindful that whatever is relevant in other markets may not necessarily be directly adapted into our ecosystem,” the SC said in its technical briefing on Monday.

The commission is also engaging with industry players to ensure that the framework review remains relevant to the domestic market needs.

SPACs are special purpose entities led by experienced promoters to raise funds from the equity market in order to acquire businesses in their relevant areas of expertise.

Structures such as SPACs enable the broader public to participate in funding high-growth companies with the necessary measures for investor protection, the SC said the Capital Market Masterplan 3 report released today.

-- BERNAMA


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