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Reverse Mergers And Regulatory Arbitrage In Indian Capital Markets




Suhana John & Arunima Kumar, Amity Law School


ABSTRACT


Reverse mergers have historically functioned as an alternative route for private companies to access public capital markets without undergoing the rigors of an initial public offering. In India, regulatory interventions by the Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI) have sought to curtail the use of reverse mergers as instruments of regulatory arbitrage. This paper critically examines the legal framework governing reverse mergers in India, analyses the persistence of arbitrage opportunities despite regulatory tightening and evaluates comparative approaches adopted in foreign jurisdictions. It argues that while India has substantially reduced the scope of abuse, structural and procedural gaps continue to permit selective circumvention of listing norms.



Indian Journal of Law and Legal Research

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Abbreviation: IJLLR

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ISSN: 2582-8878

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Website: www.ijllr.com

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Accessibility: Open Access

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License: Creative Commons 4.0

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Submit Manuscript: Click here

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Licensing: ​

 

All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

 

Disclaimer:

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The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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