Author: Bibhanshu Baibhav

Introduction In the world of corporate finance, not all companies grow through conventional means. Some choose unusual and legally grey strategies like acquiring defunct or inactive businesses to quickly enter the public markets or restructure their assets. These companies, often known as shell companies, have no significant assets or operations of their own but are used as vehicles for reverse mergers—a backdoor route to bypass regulatory scrutiny. While reverse mergers are legal, when used with shell entities, they raise serious questions about transparency, investor protection, and potential misuse. This article explores how shell companies operate, what reverse mergers are, and…