Regulatory arbitrage in cross- border crowdfunding

Majumdar, Arjya B. (2018) Regulatory arbitrage in cross- border crowdfunding. In: The Oxford handbook of IPOs. Oxford University Press, United States of America, pp. 746-771. ISBN 9780190614577

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In the aftermath of the 2008 financial crisis, small businesses found it increasingly difficult to raise funds. As a response, equity crowdfunding has emerged as a viable alternative for sourcing capital to support innovative, entrepreneurial ideas and ventures. A number of securities regulators across the world have dealt with, or are in the process of dealing with, equity crowdfunding as a disruptive innovation to established processes of corporate fundraising. However, most equity crowdfunding regulations do not take into account one critical aspect of crowdfunding—that of cross-border crowdfunding. Using a comparative analysis of a number of jurisdictions around the world in their treatment of equity crowdfunding, this chapter argues that in jurisdictions where crowdfunding activities are unregulated or have a low threshold of regulations, the opportunities arising from the resultant regulatory arbitrage could then be used by fund-seeking companies based in jurisdictions where crowdfunding is prohibited or highly regulated.

Item Type: Book Section
Keywords: Cross-border | Crowdfunding | Equity | Regulation | Regulatory arbitrage | Securities
Subjects: Social Sciences and humanities > Economics, Econometrics and Finance > Economics
JGU School/Centre: Jindal Global Law School
Depositing User: Mr Sombir Dahiya
Date Deposited: 06 Jan 2022 06:48
Last Modified: 06 Jan 2022 06:48
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