Policeman spreads out exhibits (8)
I believe the answer is:
displays
'exhibits' is the definition.
(both can mean to show)
'policeman spreads out' is the wordplay.
'policeman' becomes 'di' (abbreviation for Detective Inspector).
'spreads out' becomes 'splays' (to splay is to spread out).
'di'+'splays'='DISPLAYS'
(Other definitions for displays that I've seen before include "Arranges for inspection, shows" , "Sid plays badly and exhibits" .)