SPACs or blank cheque companies are formed to raise capital in an initial public offering (IPO) with the purpose of using the proceeds to identify and merge with a target company.
SPACs are usually formed by private equity funds or financial institutions, with expertise in a particular industry or business sector, with investment for initial working capital and issue related expenses. Such companies have recently become popular in the US.
Tyagi also said mandatory disclosures by listed companies must not be treated as check boxes.
He, further, said that disclosures by many companies are lacking in some areas.
"On periodic disclosures such as annual reports, while all the fields are being filled in, in many cases, they appear more like a check-box exercise. This is not acceptable," Tyagi said.
He, further, said that documents as important as the financial results, annual reports, corporate governance reports and others need the level of quality the investors deserve.