The merger of a company with a financially weak company, in order to get various tax exemptions is known as reverse merger. It is also a kind of merger of listed company with an unlisted company (private or public) by which the unlisted company gets listed in the stock exchange wherein the listed company has already been listed earlier. In this kind of merger, as per 1956 Act, the unlisted company automatically gets a back door entry to become a listed company without an IPO. It means the unlisted company can enjoy all the benefits of becoming a listed company without diluting its shares in the public. However, as per Section 232 (h), if the transferee company is an unlisted company, it shall not automatically become a listed company by merging with a listed company. It has to follow the process of listing as per SEBI (ICDR) Regulation 2009 in order to become listed. During merger the unlisted company also has to grant an exit opportunity to the existing shareholders of the listed company. Therefore, the process of backdoor listing will end as soon as these provisions of 2013 Act are notified.