The Bombay Stock Exchange (BSE) has rejected the company’s application to list its shares. The stock exchange banned it from listing, as the company raised funds through preferred stock offerings to invest most of its funds in cryptocurrencies.
In its statement, the Bombay Stock Exchange (BSE) said, “The policy on investment in virtual digital assets (VDAs) has been reviewed and applications of this nature cannot be handled until a final view emerges.” I work in IT training at InfoTrain, the company in question, on the pier. The company initially passed a resolution on May 23 to allocate shares of more than Rs 396 lakh, earning the total amount to Rs, and then gaining principle approval from BSE on May 9. 6 larks (approx. $720,000).
Bombay Stock Exchange rejects listing applications for crypto chain companies
The documents submitted to BSE stated that, based on receiving the initial clearance, the objectives would be to provide education and skills development, general corporate purposes, and acquisition of VDAs. Most of the revenue from issues around Rs. About 60% of 3.96 crores will be invested in purchasing VDAs.
Jetking is making crypto investments in Treasury books. This is a disclosure made to the Registrar of a Company under the Ministry of Enterprises. Indian companies use surplus funds in mutual funds, securities and fixed deposits, but are permitted to invest in VDAs as necessary to disclose them. The BSE directive shows that despite companies being allowed to remove their cash profits and direct crypto exposures from internal arisings, authorities still oppose listed companies raising money to invest in digital assets.
“We processed applications in regular courses in accordance with existing norms. Final approval was held back, addressing the issue of funding for investment in VDAs at the policy level with regulators. Thereafter, a decision was made to reject the application in accordance with the revised norms.”
Meanwhile, Jetking’s co-MD and CFO Siddharth Bharwani said he is currently considering the entire situation and examining the possibility of approaching the Securities Appeal Court. “It’s been five years since the Supreme Court said codes were not illegal and needed regulation,” Balwani added. Once stocks are already allocated and revenues are rolled out, investor refunds and stock disappearance can be a very complicated process.
Crypto regulations remain in the grey region of India
The current stance of the Bombay Stock Exchange regarding VDA’s valued entities would force most companies in the country to halt plans to launch the same product. Up until this verdict, there was optimism that most companies would follow in the footsteps of large Bitcoin finance companies such as US strategy and Japan’s Metaplanet. Currently, the main objective of these companies is to keep Bitcoin and other digital assets on their balance sheets.
However, digital assets are not considered securities and currency, but they are all seen as intangible assets, which all seem to be much more screaming in India. In this situation, transactions on digital assets cannot be considered as financial services provided by non-banked financial companies. Additionally, if the shareholders of a digital asset financing company are domestic, such entities may not need to address issues related to foreign direct or portfolio investment and foreign exchange management laws.
“Under a variety of existing laws, there is an increasingly urgent need for a more clear classification of virtual digital assets. An explicit regulatory guidance approach would be preferred over policy uncertainty,” said Jaideep Reddy, partner at Trilegal. Just like the Bombay Stock Exchange’s stance, banks are caught up in similar ambiguity. While some businessmen have been able to invest in US crypto ETFs through RBI’s liberalised remittance scheme, local banks are split into classifying investments when processing fund transfers.
