India IPO Promoters may be Restricted from Having Crypto Portfolios says Security Regulators

By: Michael Wilson

February 23, 2021 4:10 AM

Security regulators in India may restrict initial public offering promoters (IPO) from holding crypto.

The Security and Exchange Board In what seems to be another anti-crypto move by regulators in India, says IPO promoters may soon be forced to sell their crypto holdings before being allowed to participate in fund raising.

In a recent report by the Economic Times, the regulators may possibly restrict IPO promoters from raising funds if they have crypto possession of any sort. 

The security board thinks that this could become a possible risk for investors if a promoter holds an illegal asset.

This move is reportedly an extension of SEBI’s instructions to securities lawyers, merchant banks, and other stakeholders in the IPO ecosystem regarding cryptos.

As previously reported by Coinnewsafrica, tension seems to be building in India that a blanket crypto ban is imminent. The reports also indicated that crypto holders will be given three to six month liquidation period to liquidate all their crypto assets as soon as the ban comes into effect.

At different intervals the indian crypto market has suffered from various harsh regulations issued by the government.