Jul. 23 at 5:03 PM
$FAAS What if the merger happens and you get your shares but cant sell because they are listed in India and there is no access to US markets... ADRS
If millions of shares are rendered permanently untradable due to the structure of the deal, it opens the DigiAsia board and PayMate up to massive class-action lawsuits in U.S. courts for breaches of fiduciary duty. To protect themselves, corporate lawyers typically force the company to provide some sort of exit mechanism before finalizing the final cross-border share migration.
The Securities and Exchange Board of India is a highly rigid regulator. To list on the NSE, a company must prove a clear, transparent, and compliant breakdown of who owns what percentage of the company. If a massive portion of the equity is held by thousands of foreign retail investors who do not have mandatory Indian tax accounts (PAN cards) or Demat registries, SEBI can stall or block the IPO approval entirely until the company cleans up its roster.
