ManuScript Details
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Paper Id:
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IJARW2941
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Title:
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NAVIGATING THE ALTERNATIVE: LEGAL AND REGULATORY HURDLES OF REVERSE MERGERS FOR INDIAN STARTUPS
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| Published in: |
International Journal Of All Research Writings |
| Publisher: |
IJARW |
| ISSN: |
2582-1008 |
| Volume / Issue: |
Volume 7 Issue 8 |
| Pages: |
1
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| Published On: |
3/26/2026 3:51:54 AM (MM/dd/yyyy) |
Main Author Details
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Name:
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Dr. Eti Gupta |
| Institute: |
Seedling School of Law and Governance, JNU, Jaipur |
Co - Author Details
| Author Name |
Author Institute |
Abstract
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Research Area:
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Law and Legislature |
| KeyWord: |
Reverse Merger, Indian Startups, Reverse Flip, Corporate Regulation. |
| Abstract: |
In recent years, startups have emerged as key drivers of economic growth, innovation, and employment generation in India. However, accessing public capital markets remains a significant challenge for many emerging companies due to stringent regulatory requirements, lengthy procedures, and high compliance costs associated with traditional Initial Public Offerings (IPOs). In this context, reverse mergers have gained attention as an alternative pathway for startups seeking quicker access to public markets. A reverse merger typically involves a private company acquiring a publicly listed but dormant or shell company, thereby enabling the private entity to become publicly traded without undergoing the conventional IPO process. This mechanism offers several advantages, including reduced time, lower costs, and immediate market presence, making it particularly attractive for rapidly growing startups. Despite its potential benefits, the reverse merger route presents a range of legal and regulatory challenges within the Indian corporate and securities law framework. Regulatory scrutiny by authorities such as the Securities and Exchange Board of India (SEBI), compliance with provisions under the Companies Act, 2013, and concerns related to corporate governance, transparency, and investor protection complicate the process. Additionally, the emerging phenomenon of “reverse flip,” wherein Indian startups restructure their corporate domicile through overseas entities before pursuing reverse mergers or foreign listings, introduces further regulatory complexities, including cross-border legal compliance, taxation concerns, and foreign exchange regulations.
This article examines the evolving landscape of reverse mergers as an alternative route to public listing for Indian startups. It explores the attractiveness of reverse mergers, analyses the growing reverse flip trend, and critically evaluates the legal and regulatory hurdles that startups may encounter while pursuing this strategy. Furthermore, the article discusses strategic approaches that startups can adopt to navigate these complexities while ensuring regulatory compliance and corporate accountability. Ultimately, the study highlights the need for a balanced regulatory framework that fosters innovation and capital access while safeguarding market integrity and investor interests. |
Citations
Copy and paste a formatted citation or use one of the links to import into a bibliography manager and reference.
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IEEE
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Dr. Eti Gupta, "NAVIGATING THE ALTERNATIVE: LEGAL AND REGULATORY HURDLES OF REVERSE MERGERS FOR INDIAN STARTUPS", International Journal Of All Research Writings,
vol. 7, no. 8, pp. 110-110, 2026.
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MLA
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Dr. Eti Gupta "NAVIGATING THE ALTERNATIVE: LEGAL AND REGULATORY HURDLES OF REVERSE MERGERS FOR INDIAN STARTUPS." International Journal Of All Research Writings,
vol 7, no. 8, 2026, pp. 110-110.
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APA
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Dr. Eti Gupta (2026). NAVIGATING THE ALTERNATIVE: LEGAL AND REGULATORY HURDLES OF REVERSE MERGERS FOR INDIAN STARTUPS. International Journal Of All Research Writings,
7(8), 110-110.
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NAVIGATING THE ALTERNATIVE: LEGAL AND REGULATORY HURDLES OF REVERSE MERGERS FOR INDIAN STARTUPS
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NAVIGATING THE ALTERNATIVE: LEGAL AND REGULATORY HURDLES OF REVERSE MERGERS FOR INDIAN STARTUPS
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