{"id":21711,"date":"2025-06-19T12:09:03","date_gmt":"2025-06-19T06:39:03","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=21711"},"modified":"2025-06-19T13:34:11","modified_gmt":"2025-06-19T08:04:11","slug":"reverse-flipping","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/reverse-flipping\/","title":{"rendered":"Reverse Flipping"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Reverse Flipping Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The SEBI recently announced a slew of measures to ease the compliance burden in the stock market ecosystem, encourage more companies to list on the bourses after reverse flipping to India, and facilitate greater foreign fund flows into government bonds.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><b>What is Flipping?<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flipping, or \u2018externalised structure,\u2019<\/b> <span style=\"font-weight: 400;\">refers to the process of <\/span><b>transferring entire ownership of an Indian entity to an entity incorporated abroad<\/b><span style=\"font-weight: 400;\"> along with the transfer of key assets, like intellectual property, to a foreign entity <\/span><b>despite having most of their market, personnel, and founders in India.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This results in the <\/span><b>Indian company becoming a wholly owned subsidiary of the foreign company, <\/b><span style=\"font-weight: 400;\">with its <\/span><b>day-to-day operations in India.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Many Indian start-ups have previously adopted the flipping strategy, primarily <\/span><b>because of the taxation benefits <\/b><span style=\"font-weight: 400;\">that some of the <\/span><b>foreign countries offer<\/b><span style=\"font-weight: 400;\">. These include <\/span><b>Singapore, the UAE, the Cayman Islands, <\/b><span style=\"font-weight: 400;\">the United Kingdom, and the United States.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Some other reasons why companies flip are to <\/span><b>access the capital markets, higher valuations, branding <\/b><span style=\"font-weight: 400;\">and reach, and a <\/span><b>more protective intellectual property environment.<\/b><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>About Reverse Flipping<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Reverse flipping, or \u2018internalisation,<\/b><span style=\"font-weight: 400;\">\u2019 is the practice where a <\/span><b>foreign entity-owned start-up shifts its domicile back to India.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The primary reason for start-ups to flip back is <\/span><b>to potentially get listed on Indian stock exchanges, attracting interested retail investors to invest <\/b><span style=\"font-weight: 400;\">in startup shares.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Some other reasons<\/b><span style=\"font-weight: 400;\"> why start-ups are considering reverse flipping to India are the <\/span><b>country&#8217;s robust economic policies, expanding local market, and growing investor confidence<\/b><span style=\"font-weight: 400;\"> in its startup ecosystem.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are <\/span><b>various structures for executing the reverse flip,<\/b><span style=\"font-weight: 400;\"> depending on the size, location and nature of the firm. Choosing the right structure for a reverse flip is critical for a start-up, as it impacts legal, regulatory, and tax considerations.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b style=\"font-size: inherit;\">\u2018Inbound Merger\u2019 and \u2018Share Swap Arrangement\u2019<\/b><span style=\"font-weight: 400;\"> are the t<\/span><b style=\"font-size: inherit;\">wo most used structure<\/b><span style=\"font-weight: 400;\">s to execute a reverse flip.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><a href=\"https:\/\/www.business-standard.com\/markets\/news\/sebi-eases-compliance-startups-esops-drhp-psu-delisting-norms-125061801314_1.html\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">BS<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reverse Flipping is a term used to describe the trend of overseas start-ups shifting their domicile to India and listing on Indian stock exchanges. Read more about Reverse Flipping Practice, Definition, Purpose, Latest News<\/p>\n","protected":false},"author":5,"featured_media":50948,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[21,922,22,23],"class_list":{"0":"post-21711","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-pointers","9":"tag-reverse-flipping","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=21711"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21711\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/50948"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=21711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=21711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=21711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}