The rules, which come into effect from September 17, mandate RBI’s approval for such mergers or amalgamations, besides the government’s approval
The MCA notification now effectively clears the air around regulatory structures and compliance mandates for reverse flipping to India
This comes at a time when Pine Labs, Flipkart, Zepto, and Eruditus have underlined plans to reverse flip back to the country with an eye on their respective IPOs
With an eye on fast tracking the reverse flipping process, the union government has now reportedly exempted overseas incorporated startups looking to merge into their wholly-owned Indian subsidiaries from seeking clearance from the National Company Law Tribunal (NCLT).
As per Economic Times, the exemption was part of a notification issued by the Ministry of Corporate Affairs (MCA). The new rules effectively clear the air around regulatory structures and compliance mandates for reverse flipping to India.