In what seems to be another anti-crypto move by regulators in India, IPO promoters may soon be forced to sell their crypto holdings before being allowed to participate in raising funds.
According to a report by the Economic Times, the Securities Board of India may disqualify IPO promoters from raising funds if they hold cryptocurrencies.
This move is reportedly an extension of SEBI’s instructions to securities lawyers, merchant banks, and other stakeholders in the IPO ecosystem regarding cryptos.
According to a securities lawyer quoted by ET, “There could be a direction from the government in this regard. The market regulator seems to think that this could become a risk for investors if a promoter holds an asset that is illegal in the country.”
As previously reported by Cointelegraph, speculation is rife in India that a blanket crypto ban is imminent. According to people with inside knowledge of ongoing deliberations in the country’s parliament, cryptocurrency holders will be given three to six months to liquidate their virtual currency holdings once the ban comes into effect.
Earlier in February, reports also emerged that India’s parliament was looking Title: India securities regulator to reportedly bar IPO promoters from holding crypto
Sourced From: cointelegraph.com/news/india-securities-regulator-to-reportedly-bar-ipo-promoters-from-holding-crypto
Published Date: Mon, 22 Feb 2021 11:29:52 +0000