MCA Floats New Rules, Exempts Startups Looking To Reverse Flip From NCLT Nod

MCA Floats New Rules, Exempts Startups Looking To Reverse Flip From NCLT Nod

SUMMARY

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. 

No results were found for "".
  • «
  • 1
  • »
modal lock

Continue Reading With A Free Inc42 Account

Get the most out of your Inc42 experience by creating a free account. Enjoy personalized recommendations, ad-lite browsing, and access to our exclusive newsletters.