Which one of the following best describes the term ‘Reverse Flipping’ in the context of Indian startups?
(a) Moving manufacturing operations from India to foreign countries
(b) Shifting the headquarters of Indian startups to tax havens
(c) Relocating overseas-domiciled startups back to India
(d) Listing Indian startups exclusively on foreign stock exchanges

Question

Which one of the following best describes the term &lsquo;Reverse Flipping&rsquo; in the context of Indian startups?
(a) Moving manufacturing operations from India to foreign countries
(b) Shifting the headquarters of Indian startups to tax havens
(c) Relocating overseas-domiciled startups back to India
(d) Listing Indian startups exclusively on foreign stock exchanges

ONLiNE UPSC · Accepted Answer

Several startups are engaging in reverse flipping, which involves relocating their parents or holding companies from abroad back to India. This trend reflects a growing preference among overseas-incorporated startups to shift their legal base to India and get listed on Indian stock exchanges. Reasons for this shift include:
1. Tapping into India&rsquo;s expanding and dynamic economy
2. Gaining better access to domestic venture capital resources
The Economic Survey 2022&ndash;23 acknowledged this development and recommended measures to support and speed up the process, such as easing corporate regulations, simplifying capital flow procedures, and streamlining the tax system.

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Reverse Flipping

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M Question 1	⏱ 0
Which one of the following best describes the term ‘Reverse Flipping’ in the context of Indian startups? (a) Moving manufacturing operations from India to foreign countries (b) Shifting the headquarters of Indian startups to tax havens (c) Relocating overseas-domiciled startups back to India (d) Listing Indian startups exclusively on foreign stock exchanges