Spotlight on regulations as Indian startups ‘flip’ base

Info Edge NSE -0.91 % co-founder Sanjeev Bikhchandani recently tweeted that Indian startups are ‘flipping’ their structure while raising early-stage capital from foreign investors.

It immediately triggered a debate. Flipping refers to domestic startups housing their shareholding, intellectual property (IP) and at times even other assets in a firm overseas, and relegating the local entity to a subsidiary.